Samourai Case: Key Hearing Could Decide Privacy Coin’s Fate
Bitcoin privacy and coin mixing service Samourai is facing a critical week in court, with its co-founders, William Lonergan Hill and Keonne Rodriguez, charged with money laundering conspiracy and operating an unlicensed money transmitter in New York.
The FBI alleges that Hill and Rodriguez facilitated around $100 million in illicit transactions. This week marked their first joint court appearance, though significant legal developments were not made. The duo requested additional time to review extensive discovery data received recently, but their plea was denied.
A follow-up hearing to address the data has been scheduled for December 17. Rodriguez’s request for release from home detention and removal of his geolocation tracker was also denied.
The legal landscape for Samourai is intertwined with ongoing cases involving similar services, such as Tornado Cash. The key issue is whether Samourai’s operation involved controlling users’ funds, a point under scrutiny in the Tornado Cash case.
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A decision by U.S. District Court Judge Katherine Polk Failla on this matter could influence the defense strategy for Samourai. Hill and Rodriguez contend they never controlled users’ bitcoin, while the FBI argues that control is not necessary for money transmission.
The outcome of the Tornado Cash case, expected by November 30, will be crucial. If Judge Failla rules that control is required for money transmission, it could strengthen Samourai’s defense. Conversely, if control is deemed unnecessary, Samourai’s defense could be significantly weakened.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
