The legal battle between U.S. prosecutors and the co-founders of Samourai Wallet may soon take a turn, as both sides have requested a pause in court proceedings amid discussions to drop the case.
In a joint letter dated April 28, defence attorneys representing Samourai Wallet CEO Keonne Rodriguez and CTO William Hill asked Judge Richard Berman to approve a 16-day extension to the pretrial motions schedule. According to the filing, the government has agreed to the request, though without commenting on the strength of the case.
If the extension is granted, the new deadlines will push motion filings to May 29, responses to June 26, and replies to July 10. The trial, currently slated for early November, remains on the calendar.
Rodriguez and Hill were indicted in April 2024 on allegations of operating an unlicensed money-transmitting business and laundering over $100 million through their privacy-focused Bitcoin wallet. Rodriguez is in U.S. custody, while Hill remains detained in Portugal, pending extradition.
However, recent developments within the Department of Justice may shift the case’s trajectory. According to the letter, defence attorneys met with prosecutors on April 24, during which the possibility of dismissal was raised. The lawyers argue that continuing with pretrial preparations would be costly while the DOJ is still considering whether to move forward.
This conversation comes after a major shake-up in the DOJ’s approach to crypto-related enforcement. In early April, Deputy Attorney General Todd Blanche disbanded the National Cryptocurrency Enforcement Team, criticizing the previous administration’s aggressive stance as “regulation by prosecution.”
Blanche’s memo focuses on prosecuting only cases with direct criminal harm, such as fraud and serious crimes. The Samourai Wallet team referenced this memo in a letter to Acting Manhattan U.S. Attorney Jay Clayton, asking for charges to be dropped. Legal experts note that the DOJ’s new policy indicates a shift away from prosecuting developers of privacy-enhancing tools like Samourai Wallet.
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