Federal prosecutors have rejected accusations that they withheld key proof of their case towards the co-founders of Samourai Pockets, a crypto mixing service, asserting they complied with all disclosure obligations.
In a letter filed on Could 9 with a Manhattan federal courtroom, the prosecution argued that it had disclosed all “identified substantive communications” with the U.S. Treasury’s Monetary Crimes Enforcement Community (FinCEN) regarding Samourai Pockets properly forward of trial proceedings.
Prosecutors claimed the protection has had the knowledge for months and that “nothing extra is warranted,” opposing the defendants’ request for a listening to.
Samourai Pockets Case Hinges on 2023 FinCEN Name
The dispute facilities on a dialog between prosecutors and FinCEN workers that occurred in August 2023—six months earlier than fees had been filed.
In line with the protection, FinCEN officers had indicated in that dialogue that Samourai doubtless wouldn’t be labeled as a Cash Providers Enterprise (MSB) underneath present laws, doubtlessly negating the requirement for a FinCEN license.
Samourai Pockets co-founders Keonne Rodriguez and William Hill, who had been arrested in April 2024, had been charged with conspiracy to function an unlicensed money-transmitting enterprise and cash laundering.
Each have pleaded not responsible and keep they operated inside authorized boundaries.
In response, prosecutors said they acted in good religion by sharing particulars of the decision, which concerned FinCEN’s Kevin O’Connor and Lorena Valente.
Samourai case replace: The federal government doesn't suppose the prosecutors' conversations with FinCEN are an enormous deal. pic.twitter.com/GBsVqSo4Gk
— Mallard Beakman ₿
(@Bill_Fowler_) Could 9, 2025
They emphasised that the officers’ feedback had been casual and mirrored private opinions—not definitive regulatory positions.
An inner e mail summarizing the decision famous that Samourai Pockets’s lack of custody over consumer funds “would strongly counsel” it was not working as an MSB.
Nevertheless, prosecutors highlighted that FinCEN workers “didn’t have a way of what FinCEN would determine if this query had been introduced to their coverage committee.”
Protection attorneys have used the FinCEN dialog as a part of their argument to dismiss the case.
They declare it reveals Rodriguez and Hill weren’t legally required to register as cash transmitters.
In addition they referenced an April 2024 memo from Deputy Legal professional Basic Todd Blanche, stating that the Justice Division wouldn’t prosecute crypto mixers for unintentional regulatory breaches.
However prosecutors dismissed the memo’s relevance, writing that it “might not be relied upon to create any proper or profit” and shouldn’t affect the courtroom’s resolution on the case.
Samourai Cofounders Facilitated Over $2B in Illicit Transactions
U.S. prosecutors alleged that the duo facilitated over $2 billion in illicit transactions, together with $100 million in money-laundering transactions tied to darkish net markets.
Each Hill and Rodriguez may withstand 25 years behind bars for the crimes, although the DOJ’s latest shift in crypto coverage could alter their destiny.
The authorized battle surrounding Samaourai cofounders comes amid an bettering regulatory surroundings within the US.
As reported, Paul Atkins has been sworn in as Chairman of the SEC, marking a management shift that’s being welcomed by the digital asset trade.
Beneath Atkins’ management, the SEC has already withdrawn or delayed a number of outstanding circumstances towards crypto corporations.
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