The U.S. Treasury Division’s Monetary Crime Enforcement Community (“FinCEN”) is now dealing with critical questions after a brand new court docket submitting reveals it charged the builders of Samourai Pockets with working an unlicensed cash transmitter—regardless of being advised by the related regulator that no license was required.
On Might 5, 2025, legal professionals for Samourai Pockets founders Keonne Rodriguez and William Hill filed a letter to Choose Richard Berman within the Southern District of New York disclosing that FinCEN explicitly advised U.S. Division of Justice (DOJ) prosecutors in August 2023 that Samourai Pockets didn’t qualify as a Cash Providers Enterprise attributable to its non-custodial nature. The DOJ moved ahead with the indictment anyway, and suppressed that exculpatory proof for over a yr.
“FinCEN’s steering has usually centered on custody of cryptocurrency… As a result of Samourai doesn’t take ‘custody’… that might strongly recommend that Samourai is NOT appearing as an MSB,” wrote the lead prosecutor in a 2023 inside electronic mail simply revealed by the protection.
Regardless of this, Rodriguez and Hill have been arrested in April 2024 and accused of laundering over $100 million via Samourai Pockets, which allegedly facilitated $2 billion in illegal Bitcoin transactions. DOJ press releases on the time painted the service as a hub for darkish net cash laundering, with U.S. Legal professional Damian Williams stating that the defendants “knowingly facilitated the laundering of over $100 million of felony proceeds.”
However protection attorneys now argue the federal government’s personal communication with FinCEN undercuts the central cost of working and not using a license. “The related regulator advised the prosecutors that Samourai Pockets was not a cash transmitter… and the prosecutors went forward and indicted them anyway,” stated the Might 5 submitting.
The timing of this disclosure is very inconvenient, because it comes after the DOJ issued new inside steering—generally known as “Ending Regulation by Prosecution” (the “Blanche Memo”)—explicitly barring prosecutors from charging non-custodial software program instruments with unlicensed cash transmission. “It’s arduous to think about a clearer instance of regulation by prosecution,” the protection added. 
Zack Shapiro of the Bitcoin Coverage Institute summed it up in a viral tweet: “Simply revealed: FinCEN explicitly advised prosecutors Samourai Pockets wasn’t a cash transmitter attributable to its non-custodial design; DOJ prosecuted builders anyway, suppressing exculpatory proof for a yr.”
The builders’ trial is ready to start on November 3, 2025. Within the meantime, their attorneys are requesting a hearing to contemplate the federal government’s Brady violation and the potential of dismissal.
To learn extra concerning the court docket submitting, see the total PDF under.
