Alert: Founder of Samourai Wallet Released on $1 Million Bond
In a recent turn of events, Keonne Rodriguez, the founder of Samourai Wallet, has been released on a $1 million bond after a hearing at the US District Court for the Southern District of New York on April 29, 2024. Despite this development, the case involving Rodriguez continues to be a topic of discussion and concern within the cryptocurrency community and among industry stakeholders.
Strict Release Conditions Following Rodriguez’s Bond
- Rodriguez posted property as a bond at 610 Wood Street, Harmony, PA to secure his release.
- The terms of his release include the following stringent conditions:
- He is prohibited from operating, working for, or providing services to Samourai Wallet.
- No involvement in any cryptocurrency transactions, directly or indirectly, without prior approval from Pretrial Services (PTS) and the Government.
- No contact with his co-defendant, except in the presence of counsel.
International Ramifications of the Case
- Rodriguez’s co-defendant, William Hill, is currently detained in Portugal and awaits extradition to the US.
- The Department of Justice (DOJ) is working to bring Hill to the US to face similar charges in connection with the case.
Accusations Against Samourai Wallet
- The legal battle stems from allegations that Samourai Wallet facilitated billions of dollars in illicit transactions.
- Special Agent Thomas Fattorusso of the Internal Revenue Service, Criminal Investigation (IRS-CI), revealed that approximately $2 billion evaded regulatory oversight through Samourai Wallet.
- Agent Fattorusso also accused Samourai of laundering over $100 million in criminal proceeds.
Regulatory Crackdown on Samourai Wallet
- The crackdown on Samourai Wallet involved IRS-CI’s Cyber units in New York and Los Angeles, as well as international law enforcement agencies.
- This coordinated effort led to the seizure of Samourai’s operational infrastructure and the removal of its app from Google’s Play Store in the US.
Impact on Self-Custody Crypto Wallet Providers
- As a result of these developments, other self-custody crypto wallet providers like Phoenix Wallet and Wasabi Wallet have voluntarily ceased services for US customers.
- The companies behind these wallets have expressed concerns about the uncertain regulatory environment affecting their operations and the broader implications for the crypto industry.
Similar Regulatory Actions in the US
- The recent regulatory actions targeting Samourai Wallet mirror earlier initiatives by US authorities.
- On April 10, the Securities and Exchange Commission (SEC) issued a Wells notice to Consensys, the parent company behind MetaMask.
- The SEC alleged that Consensys operated as an unregistered securities broker through its MetaMask wallet.
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