On December 18th, days earlier than Christmas, Keonne Rodriguez, co-founder of the Bitcoin Samourai Pockets, must give up to jail. His crime? Making a software program instrument that gave Bitcoin customers comparable privateness to that which banks are anticipated to supply. Samourai Pockets, the model and know-how stack constructed by Rodriguez and William Lonergan Hill, was shut down by the U.S. Authorities in April 2024 on a wide range of fees, together with cash laundering, however just one cost caught after a high-profile trial, the weakest cost of all, “unlicensed cash transmission”.
What does it imply to transmit cash? In keeping with prosecutors, custodial management over consumer funds is now not a requirement to want an MSB license; “a USB cable transfers knowledge from one gadget to a different, and a frying pan transfers warmth from a range to the contents of the pan, though neither state of affairs includes exercising ‘management’ over what’s being transferred.” If the DoJ can indict a frying pan, then USB producers higher lawyer up!
Remarkably, even FinCEN disagrees with the DoJ’s novel authorized interpretation of what constitutes a cash transmitter, as steerage on the time mentioned non-custodial providers couldn’t be cash transmitters as a result of they don’t exert management over cash flows. FinCEN reasserted this truth to the DoJ prosecutors in a written assertion, however they went ahead with the fees anyway. This essential truth was withheld from the protection for nearly a yr, when it was lastly revealed, “the choose denied the movement to current this proof within the hearings, with out even any argument,” in keeping with Rodriguez. Critics argue this misconduct by the DoJ prosecutors is a violation of Brady v. Maryland, denying entry to materials that might have undermined the unlicensed cash transmission fees, or, as Donald J. Trump would put it, this prosecution was rigged.
Zack Shapiro, head of coverage on the Bitcoin Coverage Institute, warns the Trump administration and American software program business in regards to the potential ramifications of this authorized case, arguing that “collapsing the excellence between growing a instrument and working a service would introduce an untenable stage of danger for anybody constructing privacy-enhancing or security-critical software program.”
“Rodriguez and Hill finally accepted plea agreements within the face of considerable sentencing publicity, regardless that authorities data undermined the central regulatory idea of the case,” Shapiro added in a letter printed on the BPI web site, asking the Trump admin to pardon the Samourai Pockets devs.
Essentially, the prosecutorial strategy within the Samourai Pockets case dangers establishing an influential precedent that threatens the monetary privateness of Americans and stifles innovation within the U.S. crypto business. It might form future prosecutions and regulatory developments, probably reclassifying non-custodial providers as cash transmitters underneath federal regulation—requiring nationwide MSB registration with FinCEN—and prompting stricter state-level licensing in jurisdictions like New York or California.
Echoing the trial in opposition to Ross Ulbricht a decade earlier, this rigged case in opposition to Samourai Pockets was arrange in the course of the Biden administration with assist from anti-crypto politicians whom Trump defeated within the 2025 elections with the favored mandate. Throughout his marketing campaign on the 2024 Bitcoin Nashville speech, Trump mentioned, “I’ll all the time defend the fitting to self-custody,” and received main assist from the Bitcoin and crypto industries via the shared imaginative and prescient of constructing the USA the crypto capital of the world.
“I pledge to the Bitcoin group that the day I take the oath of workplace, Joe Biden and Kamala Harris’ anti-crypto campaign might be over,” – Donald J. Trump, Nashville 2024.
Many libertarians within the broader crypto business see entrepreneurs like Keonne Rodriguez and William Lonergan Hill, in the identical class as Roman Storm and Roman Sterlingov of Twister Money and radio host Ian Freeman, as nothing greater than political prisoners of an entrenched banking cartel.
David Sacks, the enterprise capitalist and White Home A.I. & Crypto Czar, also needs to take note of this problem; in any other case, what does it even imply to be the Crypto Czar? If Bitcoin wallets find yourself regulated the identical as banks, regardless of having no counterparty danger, then whose pursuits are actually being served, Mainstreet’s or Wallstreet’s?
Whereas the Trump admin has been very conservative in the course of the DoJ’s prosecution and trial of the Samourai Pockets devs — and maybe, understandably so — that stage of the authorized battle is over.
It’s time for the Trump administration to fulfill its promise to the American public and defend self-custody and the crypto business in America. It’s time for Trump to set the file straight and pardon Keonne Rodriguez and William Lonergan Hill, in addition to the Twister Money devs, whereas we’re at it, lest we have now one other Ross Ulbricht-style miscarriage of justice.
The Bitcoin and crypto business is properly behind this effort and has begun gathering signatures at Change.org, totaling over 5000 to this point and rising, with the one official fundraising marketing campaign at GiveSendGo.
Ought to Trump pardon the Samourai Pockets devs, he can be sending a transparent sign to those that need surveillance-based, central financial institution digital forex techniques to enslave People and the world that People won’t stand for it. That the USA stands with the basic human proper to privateness, dignity, due course of, and the presumption of innocence, and never the techniques of intimidation developed by the likes of Joseph Gorbles, the place privateness is a criminal offense. Mass, indiscriminate surveillance, and not using a warrant, with out due course of, that is the true crime.
