Prosecutors Weigh Dropping Charges Against Samourai Wallet Co-Founders
New York prosecutors are considering dropping the case against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill. A recent court filing indicates:
- Prosecutors and defense lawyers requested a 16-day extension to determine the government's position regarding the case.
- This follows a request from the defense for case dismissal based on U.S. Deputy Attorney General Todd Blanche's new memo.
- Blanche’s April 7 memo announced the disbandment of the National Cryptocurrency Enforcement Team (NCET) and instructed staff not to pursue cases against crypto exchanges or wallets for end users' actions.
- Ongoing investigations inconsistent with this policy are to be closed.
In April 2023, Rodriguez and Hill were charged with conspiracy to commit money laundering and operating an unlicensed money transmitting business, carrying maximum sentences of 20 years and five years, respectively. Prosecutors allege that Samourai Wallet facilitated approximately $2 billion in unlawful transactions and collected $4.5 million in fees.