In a bold move that could reshape the regulatory landscape for cryptocurrency privacy tools, the co-founders of Samourai Wallet have asked a federal judge to dismiss the criminal charges against them. The case, which has been making waves in the crypto community, pits Keonne Rodriguez and William Hill against the U.S. Department of Justice, challenging what they describe as an overreach that could stifle innovation and criminalize open-source software.
The Legal Battle Unfolds
Rodriguez and Hill are facing serious allegations: operating an unlicensed money transmitting business and conspiracy to commit money laundering. But they argue that their app, designed to enhance user privacy through non-custodial means, doesn’t fit the bill. Their legal team filed a motion in a Manhattan court asserting that Samourai Wallet merely assists users in obscuring blockchain transactions via CoinJoin, a technique that mixes multiple transactions to protect user privacy.
The crux of their defense? A divergence between the Department of Justice’s interpretation and long-standing guidance from the Financial Crimes Enforcement Network (FinCEN), which has historically advised that anonymizing software isn’t subject to money transmitter rules. “FinCEN never maintained that it was a money transmitting business that must be licensed,” the filing insists, drawing a line in the sand against what they see as an unwarranted expansion of regulatory power by the DOJ.
A Larger Implication for Privacy Tools
This legal skirmish is more than just a courtroom drama; it has far-reaching implications for the wider cryptocurrency ecosystem. Samourai Wallet’s co-founders aren’t just defending themselves—they’re championing the cause of privacy tool developers everywhere. They argue that the DOJ’s charges could set a chilling precedent, potentially implicating a swath of developers who build tools meant to safeguard user privacy. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
Crypto advocacy groups are rallying to their side. Coin Center and the DeFi Education Fund, among others, have signaled their intent to file amicus briefs supporting Samourai’s motion. Their concern is palpable: If the DOJ’s interpretation holds, it could dampen innovation and infringe on civil liberties, a sentiment echoed by many in the community.
A Regulatory Tug-of-War
The case underscores a simmering tension between regulatory bodies over the control and oversight of cryptocurrency technologies. It’s a tug-of-war that’s not just about the finer points of legal interpretation but about the future of financial privacy in a digital age. Samourai Wallet and its supporters argue that the DOJ’s stance represents an unprecedented shift, likening it to holding tool manufacturers liable for their misuse by others. It’s an analogy that resonates, illustrating the broader stakes at play. This reflects a broader legislative debate, as detailed in U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer.
As the July 22 court date approaches, all eyes will be on the Manhattan courtroom. The outcome could redefine the boundaries of regulatory authority over cryptocurrency and open-source software—raising questions about innovation, privacy, and the very nature of digital currency itself.
Looking Ahead
For now, uncertainty lingers. The crypto world waits with bated breath, aware that the decision could set a new precedent. Will the court uphold the DOJ’s charges, or will it side with Samourai Wallet, potentially opening the door for greater freedom and innovation in the realm of privacy tools? As the legal drama unfolds, it’s clear that the implications of this case will reverberate throughout the industry, shaping the conversation around privacy, regulation, and the future of cryptocurrency itself.
Source
This article is based on: Samourai Wallet Files to Dismiss DOJ Case, Citing FinCEN Guidance
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
