Samourai Wallet Defense Accuses DOJ of Suppressing Key Evidence in Crypto Case

Lawyers for Samourai Wallet have accused U.S. prosecutors of withholding crucial evidence that could exonerate its co-founders, Keonne Rodriguez and William Lonergan Hill, who face charges of conspiracy to commit money laundering and operating an unlicensed money transmission business. According to a court filing submitted Monday, the defense claims the prosecution failed to disclose a 2023 communication with the Financial Crimes Enforcement Network (FinCEN) stating Samourai Wallet did not require a license under FinCEN guidelines.

This communication occurred six months before the indictment, yet prosecutors only disclosed it in April 2025 after a specific request from the defense. The defense argues this constitutes a Brady violation—a failure to disclose exculpatory evidence, which can result in dismissal of charges due to a breach of due process.

The defense further noted that the alleged suppression prejudiced the case by affecting bail conditions and limiting access to defense funds. They also emphasized that, had the court been aware of FinCEN's stance, it might have ruled differently on prior motions, including the denial to file for early dismissal.

In a related argument, Samourai Wallet’s attorneys cited the recent “Blanche Memo” issued by U.S. Deputy Attorney General Todd Blanche, directing prosecutors to halt cases based on regulatory violations involving crypto unless there is clear evidence of wrongdoing. The DOJ has yet to decide whether it will drop the case under this new guidance.

If the Department of Justice declines to dismiss the charges, the defense intends to file a motion arguing the defendants were not money transmitters and therefore not subject to the regulations at the heart of the indictment. A hearing is scheduled for July 22, 2025. FinCEN has not commented on the case.