In February 2024, the arrest of Samourai Wallet developers Rodriguez and Hill sent shockwaves through the Bitcoin community. They were charged with “conspiracy to operate an unlicensed money transmitting business” and money laundering—despite the fact that Samourai Wallet is a non-custodial Bitcoin app, meaning users always control their own funds, and the developers never have access.
Launched in 2015, Samourai is simply software—it doesn’t hold or transmit users’ money.
The charges hinge on the claim that the developers should have registered as a Money Services Business (MSB) with FinCEN. However, recently surfaced legal documents show that prosecutors had consulted FinCEN before filing charges—and the agency had made it explicitly clear that Samourai did not qualify as an MSB, since it never takes custody of users’ funds.
Still, the Southern District of New York (SDNY) went ahead with the indictment. Internal communications even show a prosecutor acknowledging that, based on FinCEN’s guidance, Samourai would not fall under MSB rules. This came to light through a Brady letter—a required disclosure of exculpatory evidence—filed by the defense.
The case raises serious concerns about “regulation by prosecution,” where authorities bypass regulatory clarity in favor of criminal charges. If allowed to stand, this could set a dangerous precedent: one where developers of non-custodial software can be criminalized, even when they follow existing rules.
The outcome of the Samourai Wallet case could shape the future of financial privacy, open-source development, and Bitcoin fundamentals.
