Keonne Rodriguez, the founder of Samourai Wallet, faced a setback in his legal battle as a judge denied his request to change his bail conditions. Rodriguez is currently facing charges of money laundering conspiracy and operating an unlicensed money-transmitting business. The court was swayed by notes found among his belongings, which prosecutors interpreted as a potential escape strategy.
The handwritten notes outlined a detailed plan that included packing essentials like passports, $10,000 in cash, a phone with an unused SIM, and encrypted USBs. The notes also hinted at potential travel routes from Miami to destinations like Cuba or the United Kingdom, with stops at shady gas stations and using “cash only.”
Prosecutors used these notes to justify Rodriguez’s continued house arrest, arguing that they indicated a clear intent to escape. However, Rodriguez’s legal team countered that these plans were simply part of a general emergency preparedness routine and not indicative of any escape plans. Despite their arguments, the judge sided with the prosecution.
Rodriguez and his co-founder, William Hill, were arrested in April on allegations of facilitating more than $2 billion in illegal transactions and $100 million in dark web money laundering. If convicted, they could each face up to 25 years behind bars. Samourai Wallet was known for its self-custodial crypto wallet services like Whirlpool and Ricochet, designed to conceal the trail of crypto transactions.
In a twist, Rodriguez’s legal defense team pointed to a letter from US Senators Cynthia Lummis and Ron Wyden, criticizing the Department of Justice’s approach to prosecuting non-custodial crypto services like Samourai Wallet. The senators argued that the DOJ’s stance contradicted guidelines from the Financial Crimes Enforcement Network (FinCEN) regarding what constitutes a “money transmitting business.”
In related news, Alexey Pertsev, the developer of the sanctioned crypto mixer Tornado Cash, was also denied bail multiple times as his legal team prepared an appeal against his money laundering charges. The case highlights the ongoing legal battles faced by individuals in the crypto space and the complexities surrounding the regulation of non-custodial crypto services.
