Samourai Crypto wallet Case Stalled As Prosecutors Consider Dismissing Charges
Federal attorneys and the legal team representing Samourai Wallet’s co-founders have collectively requested a postponement of court actions as both parties contemplate the potential for case dismissal, in light of a recent change in the US Department of Justice’s (DOJ) crypto asset enforcement approach.
In a letter filed on April 28, 2025 to US District Judge Richard Berman, the attorneys representing Samourai Wallet’s CEO Keonne Rodriguez and CTO William Hill sought a 16-day extension of the pretrial motion timelines.
This request was made in conjunction with the prosecution, although the government has yet to officially assert its position on the dismissal’s merits.
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Deputy Attorney General Dissolves Enforcement Team
This request follows an April 7 memorandum from Deputy Attorney General Todd Blanche, which dismantled the DOJ’s digital asset enforcement cadre and indicated a withdrawal from prosecuting crypto cases that lack crypto holder detriment or obvious criminal conduct.
Blanche’s memo underscored that the DOJ “does not serve as a digital assets regulator.”
As stated in the letter, defense lawyers engaged with prosecutors and their higher-ups at the U.S. Attorney’s Office in Manhattan on April 24 to deliberate about the possible dismissal.
The defendants contended that delaying the filing timeline would assist them in avoiding “substantial costs” if the government ultimately consents to dismiss the case.
Rodriguez and Hill faced indictment in April 2024 on charges including conspiracy to engage in money laundering and running an unlicensed money-transmitting operation. Both have entered not guilty pleas.
One year since the arrest of the Samourai Crypto wallet developers pic.twitter.com/b6Yt8ZZ5mN
— CR1337 (@cryptonator1337) April 24, 2025
Should the court grant the postponement, the new deadlines would shift motions to May 29, responses to June 26, and replies to July 10. The suggested continuance would not impact the trial date, which remains set for November.
This case is a facet of a larger rollback of crypto prosecutions that started during the Trump administration. Earlier this month, SafeMoon CEO Braden John Karony invoked the same DOJ memorandum in his request to dismiss fraud allegations.
In the meantime, advocacy organizations such as the DeFi Education Fund are urging the White House to cease prosecutions of open-source developers, including Tornado Cash co-founder Roman Storm, arguing that such actions stifle innovation and criminalize software creation.
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Crypto Companies Petition Congress to Contest DOJ’s Legal Case Against Tornado Cash Developers
A coalition comprising 34 crypto firms and advocacy groups is imploring Congress to counter what they describe as an “unprecedented and excessively broad” legal interpretation employed by the US Department of Justice (DOJ) in its case against the creators of the crypto mixer Tornado Cash.
In a letter dated March 26, the coalition—led by the Decentralized finance Education Fund and supported by prominent industry names including Coinbase and Kraken—cautioned lawmakers that the DOJ’s existing position could render nearly all blockchain software developers liable to criminal charges.
The letter was addressed to significant committees in both the House and Senate, covering the Senate Banking Committee and House Financial Services Committee.
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Key Takeaways
- The founders of Samourai Wallet and prosecutors have mutually requested a delay as they evaluate the option of dismissing the case following a modification in DOJ policy.
- The DOJ has dismantled its digital asset enforcement unit, indicating a withdrawal from prosecuting crypto cases lacking evident criminal actions.
- The wider crypto community, inclusive of advocacy groups, is resisting harsh legal measures aimed at open-source developers.
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