DOJ Considers Dropping Charges Against Samourai Wallet Co-Founders Amid New Crypto Enforcement Shift

New York prosecutors are re-evaluating their case against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill following a recent memo by U.S. Deputy Attorney General Todd Blanche. The memo, issued on April 7, directed the Department of Justice to close investigations against crypto exchanges, mixing services, and offline wallets for acts committed by their end users. In response, both the prosecution and the defense have requested a 16-day continuance while awaiting the government’s final stance on the case. The charges, brought last April, include conspiracy to commit money laundering and operating an unlicensed money transmitting business, with potential sentences of up to 20 and 5 years respectively. The case, which cites around $2 billion in alleged unlawful transactions and over $4.5 million in fees, now hinges on a reexamination of enforcement priorities under the new DOJ guidelines. The development underscores the evolving regulatory landscape in the crypto space as authorities shift focus away from penalizing service providers for user activities.