In the ever-evolving world of cryptocurrencies, the news surrounding the Samourai Wallet case has taken an interesting turn. William Lonergan Hill, also known as TDev, one of the co-founders of the privacy-focused Samourai Wallet, has been granted bail by the U.S. government, although the specific terms are still being finalized.
Bail Granted, Bail Package Detailed
According to a recent court filing, Hill, who was arrested in April along with fellow Samourai Wallet co-founder Keonne Rodriguez on federal charges of money laundering and operating an unlicensed money-transmitting business, has been granted bail. The defense argues that the 65-year-old developer, who grew up in Brooklyn before moving to Paris and then Portugal, should be allowed to remain in Portugal with his wife. However, the Department of Justice prosecutors prefer that Hill stay in his sister’s basement in Brooklyn.
The defense has presented an “extraordinarily robust bail package” for Hill, consisting of at least $3 million in assets. If the court agrees to release Hill to Portugal, the package would increase to about $4.4 million, supported by pledges from his wife and family members.
Contesting the Charges
Like his co-founder, Hill plans to contest the charges. The defense argues that the conspiracy charge to commit money laundering depends on the fact that Samourai Wallet was an unlicensed money-transmitting business, which they claim is in opposition to FinCEN’s guidance at the time. Additionally, the defense points out that Samourai Wallet was available on Google’s App Store from its launch in May 2015 to April 2024, arguing that if the wallet was intended as a money-laundering service, Google would be an unindicted co-conspirator for offering the app to the world’s nearly 4 billion Android users.
“If Samourai Wallet was not a money transmitting business, it had no obligations to prevent money laundering under the [Bank Secrecy Act],” the letter states.
Bipartisan Support and Future Proceedings
The filing also includes a letter from Senators Cynthia Lummis and Ron Wyden, a bipartisan duo who wrote to Attorney General Merrick Garland, arguing that “Subjecting developers of non-custodial crypto asset software to potential criminal liability as unregistered money transmitters contravenes the well-established interpretation of [FinCEN’s guidance] and will only serve to stifle innovation and shake confidence in the DOJ’s respect for the rule of law.”
Hill is scheduled to make his first appearance at the U.S. District Court for the Southern District of New York on July 9 or 10, according to the letter. As the case unfolds, the cryptocurrency community will closely follow the outcome, as it could have significant implications for the future of decentralized wallet development and user privacy.