Samourai Wallet co-founder William Lonergan Hill, who was arrested in April for money laundering and operating an unlicensed money transfer business, has been released on bail. The specific conditions of his bail are still being negotiated.
Hill’s defense team and the Department of Justice are debating where he should reside during his bail period. His lawyers want him to stay in Portugal with his wife, while the prosecutor wants him to stay in Brooklyn with his sister.
Hill’s co-founder, Keone Rodriguez, has pleaded not guilty and has been granted bail of $10,000. Hill’s bail includes assets worth at least $30,000, which could increase to $44,000 if he stays in Portugal.
Hill plans to contest these charges, with his lawyers pointing out that the trial may not take place until 2025 due to the lengthy process of fact investigation. The defense argues that Samourai Wallet, which was available on the Google Play Store from 2015 to 2024, should not be considered a money laundering tool.
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Since the beginning of this year, the Ethereum ecosystem has reportedly lost $40 billion due to hacker attacks.
It is alleged that these charges also depend on whether Samourai Wallet is an unlicensed money transfer business, which contradicts FinCEN’s guidance at the time.
Senators Cynthia Loomis and Ron Wyden wrote a letter to Attorney General Merrick Garland, stating that prosecuting unregistered money transmission companies and other cryptocurrency software developers violates FinCEN’s guidance and may stifle innovation.
Hill is scheduled to appear in the Southern District of New York court on September 10th or 11th.