DOJ Gives Dragonfly a Pass While Samourai Wallet Founders Fold—Crypto’s Legal Whiplash Continues
Another day, another crypto legal drama—but this one cuts both ways. The DOJ just handed Dragonfly a get-out-of-jail-free card while the Samourai Wallet team took a guilty plea. Talk about regulatory whiplash.
Who’s winning? Depends which side of the subpoena you’re on.
Dragonfly—the VC giant that’s been pouring jet fuel on DeFi projects—skates away clean. Meanwhile, the privacy-focused Samourai team just became the latest casualty in the feds’ war on ‘nefarious’ crypto tools. Never mind that their wallet had legitimate uses—since when did nuance matter in finance?
The takeaway? In crypto, your legal risk isn’t about what you build—it’s about who’s writing the checks behind you. But hey, at least the SEC’s inconsistency is creating job security for lawyers.
Source: Haseeb, Managing Partner at Dragonfly Capital
The situation drew sharp reactions, as many warned that such statements could scare investors away from supporting blockchain innovation. Dragonfly said the real focus should now return to Roman Storm’s trial, which is ongoing and could end with closing arguments this week. The outcome of that case is expected to set a major precedent for open-source developers and privacy tools in the United States.
Samourai Co-Founders Reverse Course
In a separate case, the two co-founders of Samourai Wallet are preparing to plead guilty to criminal charges related to their role in a crypto mixing protocol. Court records filed on Tuesday show that Keonne Rodriguez and William Lonergan Hill intend to change their original pleas from not guilty to guilty.
The pair were arrested in April 2025 and charged with conspiracy to launder money and operating an unlicensed money-transmitting business. Authorities allege that Samourai Wallet handled more than $2 billion in unlawful transactions, including some linked to dark web marketplaces.
A hearing is set for Wednesday morning, where the court will review the updated pleas. Both men could face up to 25 years in prison if convicted.
Earlier this year, the defendants attempted to have the case dismissed, pointing to internal guidance suggesting they may not have needed a licence. However, the court rejected those arguments.
Also Read: Hong Kong’s RD Technologies Raises $40M Amid Stablecoin Licensing Buzz
