Prosecutors May Dismiss Charges Against Samourai Wallet Co-Founders Following DOJ Memo
The co-founders of Samourai Wallet face significant prison time for alleged violations, but recent developments may lead to a dismissal of the charges.
What You Need to Know:
- New York prosecutors are contemplating dropping the case against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill following a recent Department of Justice memo that indicates a shift in crypto enforcement focus.
- Both the prosecution and defense filed a joint request for a 16-day extension on case deadlines as prosecutors assess their position.
New York prosecutors are in discussions about potentially dropping the charges against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, according to a Monday court filing.
In a joint letter to District Judge Richard Berman in New York, both parties asked for a 16-day delay in the case while the government evaluates its stance after the defense called for a dismissal based on U.S. Deputy Attorney General Todd Blanche’s recent memo sent to DOJ staff.
In the memo dated April 7, Blanche stated that the DOJ’s crypto unit, the National Cryptocurrency Enforcement Team (NCET), would be disbanded and advised against taking actions against crypto exchanges, mixing services, or offline wallets for actions related to their users or inadvertent regulatory breaches.
Blanche mandated the closure of any ongoing investigations not aligned with the new policy and said they would coordinate with the DOJ’s criminal division to review pending cases.
Just three days after the issuance of this memo, the attorneys for Rodriguez and Hill communicated with SDNY prosecutors to request the dismissal of the charges based on the Blanche Memo. The parties convened on April 24 to discuss this request.
Last April, Rodriguez and Hill were charged with conspiracy related to money laundering and operating an unlicensed money transmitting business, facing maximum prison terms of 20 and 5 years, respectively. Prosecutors alleged that Samourai Wallet facilitated around $2 billion in illegal transactions between 2015 and 2024, earning them nearly $4.5 million in fees.
Read more: DOJ Axes Crypto Unit as Trump’s Regulatory Pullback Continues
