In a significant development for cryptocurrency privacy rights, the defense team in the Samourai Wallet case has formally requested a hearing regarding the prosecution’s delayed disclosure of critical FinCEN evidence. The case, which has broad implications for non-custodial wallet providers, centers on whether Samourai Wallet constitutes a money transmitting business under federal law.
Key Evidence Withheld for Nearly a Year
According to court documents filed Monday with the Southern District of New York (SDNY), prosecutors withheld crucial information from an August 2023 call where FinCEN officials stated that Samourai Wallet should not be classified as a money service business due to its non-custodial nature. This information, which could exonerate the defendants, was only revealed in April 2025.
Defense Arguments and Legal Implications
The defense team argues that this delayed disclosure violates the Brady rule, which requires prosecutors to share exculpatory evidence promptly. They emphasize that the FinCEN officials’ interpretation directly supports the defendants’ public statements about their compliance with regulations.
Broader Impact on Crypto Privacy
This case has significant implications for the cryptocurrency industry, particularly regarding privacy tools and non-custodial services. The defense noted that two U.S. Senators have already protested the charges, and recent Department of Justice guidance suggests a shift away from targeting virtual currency mixing services.
FAQ Section
What is the Brady Rule?
The Brady Rule requires prosecutors to disclose materially exculpatory evidence in the government’s possession to the defense.
Why is this case significant for crypto?
It could set precedent for how non-custodial cryptocurrency services are regulated and whether they require money transmitter licenses.
What happens next?
The court will decide whether to grant the hearing request to examine the circumstances of the delayed evidence disclosure.