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Home»BITCOIN NEWS»Bitcoin Privacy on Trial: Summary of Samourai Developers’ First Court Hearing
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Bitcoin Privacy on Trial: Summary of Samourai Developers’ First Court Hearing

By Crypto FlexsMay 29, 20243 Mins Read
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Bitcoin Privacy on Trial: Summary of Samourai Developers’ First Court Hearing
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The first hearing was held today in the U.S. Department of Justice (DoJ) case against Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill in the Southern District of New York.

I attended my first hearing. #samurai Instead of a wallet case this morning. @Bitcoin Magazine After the hearing, I spoke briefly with one of the defendants, Keonne Rodriguez.

Here’s a summary of what I learned: pic.twitter.com/QZN4Ape0CZ

— Frank Corva (@frankcorva) May 28, 2024

The two developers were arrested in late April and charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transfer business.

But only Rodriguez and his attorney, Michael Krauss, were in court today. That’s because Hill is still in Portugal and has not yet responded to the U.S. government’s extradition request.

Prosecutors said they are close to discovery (sharing evidence with the defense that will be used at trial) and are preparing for trial with or without Hill and Rodriguez present.

Samourai Wallet developer Keonne Rodriguez leaves a downtown Manhattan courthouse after a hearing on May 28, 2024. Photo credit: Jeremy Poley

“A practical discovery”

Prosecutors also announced that although they have not yet extracted all the data from the electronic devices confiscated from Rodriguez, they will make ‘substantial discoveries’ based on the information obtained so far.

He also shared that the defendant is still waiting for Rodriguez to hand over the 2 terabyte hard drive he still owns.

No details were provided about what data might be on the hard drive.

A letter from two senators

Rodriguez’s attorneys say they plan to file a motion to dismiss the Samurai charges against their client and his partner, citing a letter from U.S. Senators Cynthia Loomis (R-WY) and Ron Wyden (D-OR) to Attorney General Merrick. It was revealed. Garland said the two politicians argued that non-custodial cryptocurrency software cannot be a money transfer service.

“We are writing to express our serious concerns about recent policy assertions by the U.S. Department of Justice (DOJ) that dramatically expand the scope of the federal ban on operating unlicensed money transfer businesses,” the letter begins.

“DOJ’s unprecedented interpretation of this statute with respect to uncustodial cryptocurrency asset software services contradicts the clear intent of Congress and authoritative guidance from the Treasury’s Financial Crimes Enforcement Network (FinCEN). This interpretation risks criminalizing Americans who provide non-custodial cryptocurrency asset software services,” Senators Lummis and Wyden added.

The letter also acknowledged that “non-custodial cryptocurrency service providers cannot be classified as money transmitters because users of their services solely own and control the cryptocurrency assets.”

move forward

The judge announced that Rodriguez will remain under house arrest and that the next hearing in the case will be held on September 4, 2024 at 11:30 a.m. EST.

Those interested in donating to the legal defense fund for Samurai developers can do so through this fundraiser set up by the Bitcoin Policy Institute (BPI).

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