Bitcoin Mixer Founders May Get Reprieve as DOJ Weighs Dropping Case
The developers of the banned Bitcoin mixing app Samourai Wallet are seeking to have their case dismissed, influenced by the election of a new crypto-friendly president. A request for a 16-day extension was filed by their legal team and prosecutors, who are considering dropping the case. This follows a letter from the defendants to the U.S. attorney for the Southern District of New York, citing the disbandment of the DOJ's crypto enforcement team. The DOJ announced it would no longer pursue charges against crypto exchanges or mixing services unless linked to criminal activities. Samourai Wallet, which allowed users to obscure crypto transactions, was shut down last year, leading to arrests and website seizures. The case has garnered less attention than that of Tornado Cash, another mixing service banned in 2022 for alleged money laundering. Recently, the U.S. Treasury delisted Tornado Cash from its sanctions list, and a federal court barred the reimposition of sanctions. The DOJ has dropped several high-profile cases against crypto firms since the new administration took office.
