Defence lawyers for Samourai Wallet say federal prosecutors failed to share key guidance from FinCEN before charging the crypto service’s founders.
In a May 5 letter to a Manhattan court, attorneys for co‑founders Keonne Rodriguez and William Hill revealed that, six months before the February 2024 indictment, FinCEN staff told prosecutors that Samourai did not need a money‑transmitter license.
Despite this, prosecutors moved ahead with criminal charges, the lawyers claim, only disclosing the guidance on April 1, 2025.
Early Guidance from FinCEN
According to the letter, representatives from FinCEN’s Virtual Assets and Emerging Technology Section and Policy Division told prosecutors that Samourai Wallet was unlikely to meet the definition of a Money Services Business.
The officials noted that Samourai never took custody of users’ crypto because it did not hold the private keys. At that point, they said, “strongly suggests” no license was needed.
Prosecutors, however, opted to pursue charges, arguing Samourai exercised “functional control” over funds, which is a view FinCEN never addressed in its public guidance.
Charges and Suppression Claim
Rodriguez and Hill were charged with conspiracy to run an unlicensed money‑transmitting business and money‑laundering conspiracy. The government claims Samourai’s mixer blended funds from thousands of users and processed over $2 billion in illicit transactions, including $100 million tied to black‑market and scam operations.
Both founders pleaded not guilty when they were arrested in April 2024. Their lawyers now say prosecutors concealed the FinCEN advice for more than a year, in breach of rules requiring early disclosure of exculpatory material.
Also Read: TD Bank Slapped With Anti-Money Laundering Violations Tied To $420M In Crypto Transactions
Request for Hearing and Possible Dismissal
The defence asks the court to hold a hearing to examine why the government delayed sharing the FinCEN call summary. They seek a remedy that could include dismissing the case.
The lawyers argue that the founders relied on official guidance in good faith and had no fair warning that their app might require a license.
If the government resists dismissal, the defence plans to renew its motion, emphasising that withholding the guidance deprived the court and defendants of crucial context.
Industry Implications
This conflict over disclosure may have ripple effects across the crypto sector. Non‑custodial platforms like Samourai depend on clarity from regulators about licensing rules.
A finding that prosecutors suppressed FinCEN’s view could push agencies to issue sharper guidance on what activities trigger licensing requirements. It might also encourage other defendants to challenge charges when official advice exists but is not shared.
Founders Speak Out
In court papers, Rodriguez and Hill stress their commitment to legal compliance. They say they built Samourai Wallet to offer privacy and security without controlling customers’ assets.
Their letter quotes a FinCEN email acknowledging that any “functional control” argument lacks grounding in existing rules and would be difficult to prove. The founders argue that, had prosecutors told them of this view, they could have avoided criminal exposure.
The judge must decide whether to grant the defence’s request for a disclosure hearing. If the court finds prosecutors erred, it may order sanctions or require the government to outline why it pursued the case despite FinCEN’s advice.
The ruling could shape how prosecutors handle internal guidance and affect future enforcement actions against crypto services.
Also Read: FinCEN To Bar Huione Group From U.S. Banking Over Money Laundering & Ties With N.Korean Hackers