In the ongoing Samourai Wallet legal case, the defense has filed a letter to the SDNY requested a hearing over potential suppressed evidence by the prosecution. The defense alleges that FinCEN, during a call on August 23, 2023, indicated that Samourai Wallet doesn't qualify as a money transmitting business, as it does not take custody of users' assets. This revelation is viewed as critical exculpatory evidence potentially clearing the developers from the charges of conspiracy to operate without licensing for a money service business, contradicting the prosecution's prior claims of compliance with Brady guidelines.
The information the Government suppressed for almost a year is classic Brady: During its investigation of Samourai Wallet, prosecutors called FinCEN to determine whether it would qualify as a 'money service business' that was required to have a license and to implement anti-money laundering controls.
Two FinCEN employees, including the Chief of FinCEN's Virtual Assets and Emerging Technology Section in the Enforcement and Compliance Division, responded that, under FinCEN's guidance, the answer was 'no' because Samourai did not take custody of a user's cryptocurrency.
Because this response precisely echoes the public statements Samourai Wallet made about why its business did not run afoul of the licensing and money laundering requirements for money transmitters, FinCEN's statements provide powerful corroboration of Mr. Hill and Mr. Rodriguez's good faith belief that they were not violating any laws.
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