"His crime? Creating a software tool that gave Bitcoin users comparable privacy to that which banks are expected to provide. Samourai Wallet, the brand and technology stack built by Rodriguez and William Lonergan Hill, was shut down by the U.S. Government in April 2024 on a variety of charges, including money laundering, but only one charge stuck after a high-profile trial, the weakest charge of all, "unlicensed money transmission"."
"What does it mean to transmit money? According to prosecutors, custodial control over user funds is no longer a requirement to need an MSB license; 'a USB cable transfers data from one device to another, and a frying pan transfers heat from a stove to the contents of the pan, although neither situation involves exercising 'control' over what is being transferred.' If the DoJ can indict a frying pan, then USB manufacturers better lawyer up!"
Keonne Rodriguez must surrender to prison on December 18th after pleading to unlicensed money transmission. Samourai Wallet, created by Rodriguez and William Lonergan Hill, provided Bitcoin users enhanced privacy via a non-custodial software stack. The U.S. Government shut down Samourai in April 2024 and pursued multiple charges, but only the unlicensed money transmission charge under 18 U.S.C. §1960(b)(1)(C) resulted in conviction. Prosecutors argued that custodial control is not required to be a money transmitter, using analogies comparing data and heat transfer. FinCEN maintained that non-custodial services do not exert control, conveyed that view in writing, and that statement was withheld from the defense for nearly a year; a judge denied a motion to present it.
Read at Bitcoin Magazine
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