Samourai Wallet Alleges Feds Buried Key Memo That Would Have Exonerated Crypto Mixers
Privacy-focused Bitcoin wallet Samourai drops bombshell claim: Federal investigators suppressed internal guidance that could have legitimized transactional obfuscation tools.
Behind the regulatory curtain: Sources suggest FinCEN’s 2019 memo—never publicly released—drew clear lines between privacy tech and outright money laundering. Guess which interpretation won?
The finance jab: Meanwhile, Wall Street quietly adopts blockchain analytics tools that make Chainalysis look like Google Maps—but sure, retail investors are the real compliance risk.
Samourai Wallet Founders Were Arrested Despite FinCEN’s Clear Stance on Legal Status
Rodriguez and Hill were charged in Feb. 2024 with conspiracy to operate an unlicensed money transmitting business and money laundering conspiracy. The charges were unsealed and the pair arrested in April. The allegations stem from Samourai’s mixing service, which allegedly helped launder over $100m through over $2b in illegal transactions.
Prosecutors claimed the service aided in transactions involving black market dealings and scammers.
The defense team pointed out that FinCEN had informed prosecutors that Samourai Wallet, which does not hold custody of cryptocurrencies, did not qualify as a “money services business” under existing guidance.
Despite FinCEN’s Position, Prosecutors Push Forward with Charges Against Samourai Wallet
This information came after a conversation between prosecutors and FinCEN officials, including Kevin O’Connor and Lorena Valente.
They considered whether Samourai met the criteria for a money transmitter. The officials noted that Samourai did not take custody of crypto. Therefore, it does not control the private keys to any stored assets. This suggested that Samourai was not operating as a money services business.
Despite this, prosecutors proceeded with the charges, arguing that Samourai could still be accused of functional control over the cryptocurrency. However, FinCEN had not addressed this argument in their official guidance, and it was considered a weak position by the officials.
Samourai Lawyers Demand Hearing Over Delayed Disclosure and Call for Case Dismissal
Now, Samourai’s lawyers are seeking a hearing to investigate the delay in disclosure. They want to determine an appropriate remedy.
If the government resists dismissing the case, the defense will renew their request for dismissal. They argue that the charges were brought without fair notice. The defense also claims the company acted in good faith based on the available guidance at the time.
Further, the defense team pointed to a recent memo from Deputy Attorney General Todd Blanche. The memo stated that the Justice Department would no longer prosecute crypto mixers like Samourai for regulatory violations.
Issued on April 7, 2025, the memo prompted the defense to demand that the case be dismissed. They argued that, under FinCEN’s guidance, Samourai was not a money transmitter and could not be prosecuted for lacking a license.
The outcome of the hearing could impact the broader industry. It is especially important for developers of non-custodial platforms like Samourai Wallet. If successful, it could set a precedent for how crypto mixers are regulated in the future. This would particularly affect their classification under US financial laws.
