In a striking development within the cryptocurrency realm, attorneys representing Samourai Wallet have alleged that federal prosecutors deliberately suppressed crucial information regarding the company’s need for a license. This situation arose after prosecutors charged co-founders Keonne Rodriguez and William Hill, significantly complicating the legal landscape for crypto mixing services.
According to a letter submitted to a Manhattan federal court in May 2025, Samourai’s legal team asserted that representatives from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) informed them earlier that year that the Samourai Wallet app did not qualify as a ‘Money Services Business’ (MSB) that would require a FinCEN license. Intriguingly, this information appeared to be omitted during the prosecution’s presentation of the case, leading to the subsequent charges against Rodriguez and Hill.
The correspondence detailed that prosecutors had an obligation to share their discussions concerning Samourai with FinCEN by May 8, 2024, following the unsealing of charges against the duo. Instead, this information was withheld for over a year, only coming to light on April 1, 2025. During this time, Rodriguez and Hill were charged with operating an unlicensed money transmitting business and conspiracy to commit money laundering.
The nature of Samourai’s operations involved pooling cryptocurrencies from various users to obfuscate their origins—effectively assisting in overly $2 billion worth of alleged illegal transactions, according to government claims. Both Rodriguez and Hill have pleaded not guilty to these charges, maintaining that they believed their operations were legitimate under existing regulations.
Legal documents reveal that during a call with FinCEN officials, it was asserted that because Samourai does not take ‘custody’ of cryptocurrency by holding private keys, the company was not acting as a money services business. Nevertheless, prosecutors countered these assertions, positioning their case on the argument that Samourai effectively controlled the assets, a claim they admit lacks clear guidance and may be challenging to substantiate.
The attorneys for Samourai have requested a court hearing to explore the implications of this late disclosure and seek possible remedies for the prosecution’s failures. If this information is deemed valid, it paves the way for a renewed attempt to dismiss the charges against Rodriguez and Hill on the grounds that they acted under what they understood to be lawful conditions.
In light of recent statements from Deputy Attorney General Todd Blanche regarding the Justice Department’s potential shift in enforcing regulations against crypto mixers, Rodriguez and Hill’s legal representatives have indicated that they may pursue a dismissal based on the premise that their actions did not constitute a violation of FinCEN guidance.
This case not only raises questions about the culpability of crypto mixing services under U.S. law but also highlights the complexities in regulatory compliance and enforcement as the cryptocurrency industry continues to evolve.
