By EZ in News — Sep 18, 2024

Free Samourai: 8TB+ of Discovery, Motion to Dismiss Charges, Rodriguez's Bail Modifications Denied

Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill attended a pre-trial hearing in the Southern District of New York. Defense attorneys argued that Samourai Wallet does not constitute a money transmitting business. Rodriguez's request to modify his bail conditions was denied.

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The next hearing for pretrial motions was scheduled for December 17th, 2024 at 10 AM ET. It will include a defense motion to dismiss criminal charges on the grounds of what Hill's lawyer described as "extraordinarily unusual" and a misapplication of money laundering statutes.

"The defense plans to argue that even if all claims made in the initial indictment were true, they would not "meet the bar for the charge," and that "this is not how Congress intended the [money laundering] statutes to be used," reported The Rage.

The hearing was attended by reporters David Z. Morris, on behalf of The Rage (read a live thread here), and Frank Corva, on behalf of Bitcoin Magazine.

I attended the status conference for the #Samourai case today on behalf of @BitcoinMagazine.

Here’s where things stand: pic.twitter.com/MGVlV6LnJK
— Frank Corva (@frankcorva) September 17, 2024

All in all, the prosecutors said they managed to extract data from 15 of Rodriguez's 44 devices and 25 of Hill's 27 devices. They added that a third, smaller batch of discovery will be issued soon.
Rodriguez's attorney argued that setting a trial date is premature since the defense has not yet reviewed all discovery materials provided in mid-August 2024. Hill's attorney highlighted that they received 8 terabytes of data, equivalent to 75% of the Library of Congress's information.

"The defense also said that it has yet to come across any evidence showing that Rodriguez or Hill operated an unlicensed money transmitting business," writes Frank Corva.

Rodriguez's lawyer also requested two changes to his bail conditions: removing home detention and modifying restrictions on his ability to transact with cryptocurrency, some of which were proceeds from Samourai. The defense contended that the restrictions were unwarranted because Rodriguez was willing to face trial as he did not believe he had committed any crime.
The prosecution countered by referencing handwritten pages found in Rodriguez's home that outlined how he would flee the country during a 'general emergency.' These plans reportedly included using multiple passports, $10,000 in cash, a burner phone, an unused SIM card, and various mnemonic phrases.
Judge Richard M. Berman denied these requests and urged both the prosecution and defense to “get moving on the case.”

Support the legal defense fund for Samourai Wallet developers by donating to the P2P Rights Fund.