TrueUSD (tusd) 
Samourai Wallet Co-Founders and U.S. Prosecutors Seek Delay in Legal Proceedings
Samourai Wallet co-founders and U.S. prosecutors have jointly requested a delay in court proceedings as discussions continue over a possible dismissal of the case. This development was outlined in an April 28 letter to Judge Richard Berman, where defense attorneys representing the wallet’s CEO and CTO sought a 16-day extension for pretrial motions.
Proposed Timeline Adjustments
If approved, the updated schedule would extend the deadline for motions to May 29, with government responses due by June 26 and replies by July 10. Despite these changes, the trial date—currently set for early November—would remain unchanged.
Background on the Case
Samourai Wallet CEO Keonne Rodriguez and CTO William Hill were indicted by the U.S. Department of Justice (DOJ) in April 2024. They face allegations of operating an unlicensed money-transmitting business and laundering over $100 million through the platform. While Rodriguez was arrested in the U.S., Hill was detained in Portugal and is awaiting extradition.
Defense Arguments for Case Dismissal
The April 28 letter revealed that defense attorneys met with prosecutors on April 24 to discuss potentially dismissing the charges. The defense argued that preparing motions would be a “significant expense” while the DOJ is still deliberating whether to proceed with the case. Prosecutors reportedly agreed to the delay without commenting on the merits of the case.
DOJ Policy Shift and Its Implications
The joint request for a delay follows a significant policy shift within the Justice Department. Earlier in April, Deputy Attorney General Todd Blanche issued a memo disbanding the DOJ’s National Cryptocurrency Enforcement Team. This task force, created during the Biden administration, was dedicated to investigating crypto-related crimes.
“The DOJ is not a digital assets regulator,” Blanche stated in the memo, criticizing the previous administration’s approach of “regulation by prosecution.”
The memo directed prosecutors to focus on cases involving direct criminal harm, such as investor fraud or the use of cryptocurrencies to facilitate serious offenses. This shift signals a narrower scope of enforcement, avoiding targeting developers solely for creating privacy-centric tools.
Revised Enforcement Strategy Raises Questions
Samourai Wallet’s legal team referenced this revised enforcement stance in their request to Acting Manhattan U.S. Attorney Jay Clayton on April 10. They argued that the DOJ’s updated policy now contradicts the department’s earlier position on platforms like Samourai Wallet, which prioritize user privacy.
Other cases are also citing this policy change. For instance, SafeMoon CEO Braden Karony recently asked a New York judge to drop his fraud and securities charges, claiming they no longer align with the DOJ’s updated enforcement priorities.
Looking Ahead
The delay in proceedings provides both the defense and prosecutors additional time to assess the impact of the DOJ’s revised policy on this case. Should the charges be dismissed, it could set a precedent for how privacy-focused crypto platforms are treated under the law moving forward.
