- Crypto advocacy groups have urged a U.S. court to dismiss the case against Samourai Wallet
- Developers argue they only created software, not acted as money transmitters
- Critics say the charges risk broadening legal liability for non‑custodial crypto tools
A coalition of prominent crypto advocacy groups has called on a federal judge to dismiss the Justice Department’s charges against Samourai Wallet, arguing the case represents a dangerous legal precedent for software developers. The software—a privacy-focused Bitcoin mixer—was shuttered last year, and its founders arrested, but several groups have called for the charges to be dropped. The campaign follows the reversal by a U.S. judge of the case against Tornado Cash earlier this year.
Case Hinges on Software, Not Money Control
In April 2024, U.S. authorities shut down Samourai Wallet and arrested its founders, Keonne Rodriguez and William Lonergan Hill, accusing them of operating an “unlicensed money transmitting business” and facilitating money laundering.
The Department of Justice (DOJ) alleges the platform processed around $2 billion in mixed transactions, including $100 million tied to illicit sources like Silk Road and Hydra Market. Rodriguez and Hill, who each face up to 25 years in prison, maintain they simply developed software; users, not the developers, controlled the crypto funds.
Advocacy Groups Step In
The Blockchain Association, Coin Center, the DeFi Education Fund, and the Bitcoin Policy Institute last week submitted amicus briefs supporting the dismissal of the case, in which they emphasized that the developers never held or transferred funds themselves and argue that FinCEN guidance requires “total independent control” of assets to qualify as money transmission.
Amanda Tuminelli, Chief Legal Officer at DeFi Education Fund, defended privacy-enhancing tools, telling Decrypt, “Privacy is normal: it’s normal for people to want to make financial transactions on‑chain whilst still maintaining privacy—people do that with cash every day in their regular lives.” Peter Van Valkenburgh of Coin Center added that merely running a coin‑join server “did not rise to the level of control over user funds that justifies treatment as a money transmitter” under FinCEN’s 2019 guidance.
This case builds on tensions sparked by earlier actions against Tornado Cash, whose founders were sanctioned for laundering over $1 billion. While Tornado Cash was later delisted and courts blocked further sanctions, the Samourai Wallet case reflects escalating debate over how privacy tools are regulated. If the government’s expansive definition of money transmission prevails, developers of non-custodial crypto tools could face criminal liability, explaining why advocates are demanding clearer legal boundaries to balance privacy and innovation against legitimate concerns over illicit financial activity.
