Trump Signals Pardon Review for Samourai Wallet Founder – A Crypto Privacy Watershed?

Political winds are shifting around cryptocurrency privacy tools, putting a controversial case back in the spotlight.

The Regulatory Crossfire

Samourai Wallet, a non-custodial bitcoin mixing service, found itself in the crosshairs of U.S. authorities long before its founders faced charges. The platform's core promise—financial privacy through coin obfuscation—put it on a collision course with regulators focused on anti-money laundering compliance. Its operational model, which never touched user funds directly, became a legal battleground over the definition of a money transmitter.

A Presidential Intervention

The case has now escalated to the highest level. A commitment to review a potential pardon injects immediate political uncertainty into the crypto regulatory landscape. This move isn't just about one case; it's viewed by many as a symbolic stance on financial sovereignty and innovation. The review process itself will dissect the legal arguments, weighing claims of facilitating illicit finance against principles of developer freedom and privacy rights.

The Broader Implications

This development sends ripples far beyond a single courtroom. For the privacy-focused segment of crypto, it's a potential lifeline. For regulators, it could represent a complicating factor in enforcement strategy. The market often reacts to regulatory clarity—or the lack thereof—with volatility, and this introduces a new variable. It underscores the increasingly political nature of crypto governance, where technology and ideology are inextricably linked. After all, in traditional finance, the only true privacy seems reserved for the boardrooms where bailouts are decided.

The coming review will test the boundaries of how financial privacy is defended in the digital age, potentially redrawing lines that many thought were settled.

Founders face money laundering charges

Rodriguez and William Lonergan Hill launched Samourai Wallet, a Bitcoin wallet designed with privacy features. The wallet included a crypto mixing service that made it difficult to trace where money came from or where it went during transactions.

The Justice Department arrested both men during Joe Biden’s time as president. They faced charges of conspiracy to commit money laundering and running a money-transmitting business without proper licenses. Federal prosecutors claimed Rodriguez and Hill encouraged people to use Samourai to clean millions of dollars gained through illegal activities.

Last month, Rodriguez got five years in prison for running Samourai with the mixing feature that authorities said helped wash millions in dirty money. Hill, who worked as chief technology officer, received four years.

The president’s remarks about the Samourai case come after he pardoned Ross Ulbricht, who started Silk Road, a marketplace on the darknet. Ulbricht had been serving two life sentences for running the site that allowed people to buy drugs and other banned items and services. Silk Road used bitcoin for payments and helped make the digital currency more popular.

People in the bitcoin community who pushed for Ulbricht’s pardon are now doing the same for the Samourai founders and developers behind Tornado Cash, another mixing service for cryptocurrency.

In October, Trump also pardoned Changpeng “CZ” Zhao, the former head of Binance, saying the Biden administration’s “war against crypto” was over. Critics questioned the decision, especially after Trump told CBS he didn’t know who Zhao was. The WHITE House later clarified that he meant he had never met him in person.

Rodriguez responded to Trump

Rodriguez posted a response on X following Trump’s comments. “I have always said that the most challenging aspect of getting a pardon for me and Bill WOULD be getting the attention of [Donald Trump],” he wrote. “[President Trump] knows all about a weaponized Biden DOJ hunting down their political rivals … If he looks at our case closely it will be a case of deja vu, and I think he would do the right thing and grant us a pardon.”

Rodriguez thanked Trump and supporters who backed his pardon request. He mentioned having four days before reporting to federal prison FPC Morgantown.

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