Samourai Wallet Eyes Freedom as Hidden DOJ Evidence Surfaces

On May 5, 2025, new evidence surfaced in Manhattan federal court in the ongoing case against crypto mixing app Samourai Wallet. This letter showed that the U.S. Department of Justice (DOJ) knew Samourai Wallet was not breaking the law. 

Still, the DOJ arrested its co-founders. This revelation could now lead to dismissing a high-profile case that raised profound questions about crypto regulation in America.

DOJ Knew Samourai Was Legal, But Prosecuted Anyway

In 2023, officials from the Financial Crimes Enforcement Network (FinCEN) told the DOJ that crypto platforms like Samourai Wallet are not considered Money Service Businesses (MSBs). This is because the platform is a non-custodial service. Hence, it does not need a license to operate 

Against FinCEN’s guidance, the DOJ charged Samourai’s co-founders, Keonne Rodriguez and William Hill for running an unlicensed money-transmitting service. This move is seen as possibly unlawful.

A new policy memo written by Deputy Attorney General Todd Blanche and issued on April 7, 2025, may change the outcome of this case. The memo states that the DOJ should not criminally prosecute actions that fall under other regulatory agencies. It also emphasizes that crypto mixers should not be charged for failing to register with FinCEN if they are non-custodial. 

This could change the case against Samourai. It was revealed that the DOJ hid the guidance from FinCEN for nearly a year. This act is called a violation of legal standards. The presiding judge has ordered prosecutors to respond to the letter.

Samourai Founders Accused Of Helping Criminals 

In April 2024, the DOJ arrested Rodriguez and Hill, but they were later released on bail. They said the app was used to hide $100 million in stolen funds and handled crypto assets worth $2 billion in total. The agency linked the app to darknet marketplaces like Hydra and Silk Road.

FBI and IRS officials also claimed the founders knew they were breaking the law. However, the Samourai team said that it is true and that FinCEN’s rules prove it.

Rodriguez had made public statements even before his arrest, saying he was confident the platform followed the law. He said they would have moved the service elsewhere if it ever became illegal in the U.S.

This happened during a wider crackdown on crypto called Operation Choke Point 2.0, during which banks were pressured to cut ties with crypto firms. Many people, including Federal Reserve Chair Jerome Powell, crypto leaders, and lawmakers, have criticized the policy.

What Comes Next?

Samourai Wallet’s legal battle is similar to Tornado Cash, another crypto mixer also being charged. Both cases may end soon if the courts follow the new DOJ memo.

With the Trump government supporting crypto more strongly, there is hope that these founders will be freed. Possibly, the people who wrongly charged them will face consequences.