Crypto Advocacy Groups Urge Dismissal of Case Against Bitcoin Mixer Samourai
Two crypto advocacy groups, including the Blockchain Association and Coin Center, support the dismissal of a case against Samourai Wallet, accused of operating as an illegal money transmitter. They argue that Samourai Wallet merely facilitated online financial transactions without violating U.S. law. The groups emphasize that privacy in financial transactions is normal and that software developers should not be prosecuted for user-controlled funds. Arrests of Samourai Wallet developers occurred in April 2024, with the DOJ alleging the app functioned as an unlicensed money transmitter. Advocacy groups assert that FinCEN's definition of money transmitters requires total control over funds, which Samourai Wallet developers did not have. The case has raised concerns in the cryptocurrency community about the implications for software developers. Coin mixing services have faced scrutiny since the U.S. banned Tornado Cash in 2022 for facilitating money laundering.
