DOJ Crypto Shift May Lead to Dismissal of Samourai Wallet Case

New York prosecutors may drop charges against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, according to a recent court filing. Both parties jointly requested a 16-day extension to allow the government to review its stance following a new Department of Justice (DOJ) directive that could impact the case’s validity.

The filing references an April 7 memo from U.S. Deputy Attorney General Todd Blanche, who disbanded the DOJ’s National Cryptocurrency Enforcement Team (NCET). The memo advised prosecutors to refrain from targeting crypto exchanges, mixing services, or self-custody wallet providers for actions committed by end users or for accidental regulatory violations. Blanche also directed that active cases inconsistent with the updated policy be reviewed or closed.

Rodriguez and Hill’s legal team responded swiftly, sending a letter to the Southern District of New York (SDNY) on April 10, urging dismissal of the superseding indictment in light of the new DOJ stance. A meeting between the defense and prosecutors followed on April 24 to discuss the request.

The case originally charged the Samourai Wallet founders with conspiracy to commit money laundering and operating an unlicensed money-transmitting business. Authorities alleged the privacy-focused crypto wallet enabled over $2 billion in illicit transactions between 2015 and 2024, generating $4.5 million in fees for the defendants. If convicted, Rodriguez and Hill face up to 20 and five years in prison, respectively.

The potential dismissal marks a significant shift in how U.S. authorities may approach crypto-related cases, reflecting broader regulatory pullbacks under the current administration. A final decision on the case is expected after the 16-day continuance. rollback.