Samourai Wallet Co-Founder Granted Bail Amid Money Laundering Charges

William Lonergan Hill, co-founder of Samourai Wallet, has been granted bail after being arrested in April for money laundering and operating an unlicensed money transmitting business. The specific terms of his bail are still under negotiation.

Hill’s defense team and the Department of Justice disagree on where Hill should stay during the bail period. His defense wants him to stay in Portugal with his wife, while prosecutors prefer he stays in Brooklyn with his sister.

Hill’s co-founder, Keonne Rodriguez, has already pleaded not guilty and was released on a $1 million bond. Hill’s bail package includes at least $3 million in assets, potentially increasing to $4.4 million if he stays in Portugal.

Hill plans to contest the charges, with his lawyer noting the trial might not happen until “deep into 2025” due to the extensive discovery process. The defense argues that Samourai Wallet, available on Google’s App Store from 2015 to 2024, should not be considered a money laundering tool.

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They also claim that the charges hinge on whether Samourai Wallet was an unlicensed money-transmitting business, contrary to FinCEN’s guidance at the time.

Senators Cynthia Lummis and Ron Wyden have written to Attorney General Merrick Garland, arguing that prosecuting developers of non-custodial crypto software as unregistered money transmitters contradicts FinCEN’s guidance and could stifle innovation.

Hill is set to appear in the U.S. District Court for the Southern District of New York on July 9 or 10.

Alexander Stefanov