EddieJayonCrypto
7 Jun 25
Two crypto advocacy groups, along with others, have urged the dismissal of charges against Samourai Wallet, a Bitcoin mixer accused of operating as an illegal money transmitter. The Blockchain Association, Coin Center, the DeFi Education Fund, and the Bitcoin Policy Institute argue that Samourai Wal...
Crypto advocacy groups have called for the dismissal of charges against Samourai Wallet, a Bitcoin mixer accused of operating as an illegal money transmitter. The Blockchain Association, Coin Center, the DeFi Education Fund, and the Bitcoin Policy Institute argue that Samourai Wallet only provided software enabling private financial transactions and did not violate U.S. law.These groups contend that prosecuting developers who do not control user funds misinterprets money transmission laws. According to FinCEN guidance, entities must have independent control over funds to be classified as money transmitters—a criterion the Samourai Wallet defendants did not meet.The U.S. Department of Justice arrested developers Keonne Rodriguez and William Lonergan Hill in April 2024, alleging the app was an unlicensed platform used by criminals. The app functioned as a Bitcoin mixing service, allowing users to obscure previous transactions, similar to other mixers like Tornado Cash, which faced sanctions and criminal charges earlier.Lawyers for the defendants argue that users always controlled their Bitcoin, challenging the government’s classification of the app as a money transmitter. This case echoes previous legal controversies over crypto privacy tools and raises important issues about the criminalization of software developers within the industry.The advocacy groups emphasize that privacy in financial transactions is a normal expectation, akin to the use of cash in everyday life. They warn that expanding money transmission laws to cover non-custodial software tools threatens the foundation of crypto innovation and user autonomy.In a broader context, major industry players and politicians have criticized government actions against crypto mixing services. Notably, the U.S. Treasury removed Tornado Cash from its sanctions list in March 2025, and a federal court barred the reimposition of sanctions in April.This ongoing debate underscores the tension between preserving user privacy and ensuring regulatory compliance in the evolving cryptocurrency landscape.