At the moment, Samourai Pockets builders Keonne Rodriguez and William Lonergan Hill appeared collectively in courtroom within the Southern District of New York for a standing convention.
I attended the standing convention for the #Samourai case at present on behalf of @BitcoinMagazine.Right here’s the place issues stand: pic.twitter.com/MGVlV6LnJK
— Frank Corva (@frankcorva) September 17, 2024
This was the primary time the 2 made a public look collectively because the US Division of Justice (DoJ) charged the 2 builders with conspiracy to commit cash laundering and conspiracy to function an unlicensed cash transmitting enterprise in April 2024. It was additionally the primary time both of them have appeared in courtroom since Hill appeared forward of his bail launch in July and Rodriguez first attended a courtroom listening to in Might.
The prosecution addressed the courtroom first, stating that it had produced “voluminous batches of discovery.”
It made the primary batch out there to the protection in mid-June 2024. This batch featured enterprise data, emails and social media account data amongst different information.
The second batch, which it made out there to the protection in mid-August 2024, featured information extractions from the units that the DoJ seized from the 2 builders. The DoJ has extracted data from 15 of the 44 units seized from Rodriguez and 25 of the 27 units seized from Hill.
The prosecution additionally said that it will produce a 3rd batch of discovery containing a “comparatively modest” quantity of information quickly and that it was ready to proceed with trial.
No Proof Of Cash Transmission
Rodriguez’s lawyer made the case that it was untimely to set a trial date, because the protection has but to evaluation all the discovery made out there in mid-August 2024. The protection additionally mentioned that it has but to come back throughout any proof displaying that Rodriguez or Hill operated an unlicensed cash transmitting enterprise.
Hill’s lawyer said that they’ve acquired 8 terabytes value of discovery. To place this quantity of information in context, he defined that this was the equal of 75% of the quantity of knowledge within the Library of Congress and that, if one printed this data, one might stack the paper it was printed on “to the moon and again 22 occasions,” making the purpose that it will be arduous to kind via and evaluation.
Hill’s lawyer additionally referenced the letter from Senators Cynthia Lummis (R) and Ron Wyden (D) through which the lawmakers said that the DoJ’s unprecedented interpretation of the US Division of the Treasury’s Monetary Crimes Enforcement Community (FinCEN) statute concerning working an unlicensed cash transmitting enterprise contradicts the intent of the rule. For that reason, he proposed a movement to dismiss the cost.
The decide denied this request and scheduled a follow-up listening to for December 17, 2024 at 10 AM ET.
Rodriguez’s Request For Bail Modifications
Within the second portion of the convention, Rodriguez’s lawyer requested two modifications to Rodriguez’s bail circumstances. He requested that the courtroom take away Rodriguez’s dwelling detention mandate and that the courtroom modify restrictions on Rodriguez’s capability to transact with cryptocurrency, a few of which was proceeds from Samourai. (Zack Shapiro, Authorized Fellow on the Bitcoin Coverage Institute (BPI) later defined to me that the second modification was requested partially in order that Rodriguez might use bitcoin proceeds from Samourai to pay for authorized charges.)
Rodriguez’s lawyer argued that dwelling detention was “unduly restrictive” and “pointless,” and that Rodriguez isn’t a flight threat. The protection additionally cited two situations through which Rodriguez had the chance to flee however didn’t in its efforts to make the case that Rodriguez not wanted to put on a location monitoring system.
The prosecution pushed again, arguing that Rodriguez’s dwelling detention was needed to make sure that Rodriguez continued to look for trial. It additionally said that the fees being levied towards Rodriguez for working a “cryptocurrency cash laundering enterprise” have been extreme and that Rodriguez was probably dealing with a possible sentence of as much as 25 years.
The prosecution went on to quote proof from handwritten pages that it had obtained from Rodriguez’s dwelling containing particulars about how he would flee the nation to a jurisdiction from which it will be troublesome to extradite him. This data included an inventory together with totally different passports in addition to having $10,000 in money, a burner cellphone, an unused SIM card, and varied mnemonic phrases for crypto property amongst different objects.
Rodriguez’s lawyer argued that this plan utilized to what Rodriguez would do within the case of a extra common emergency, whereas the prosecution argued that this was Rodriguez’s present escape plan.
The prosecution said that it was “a fairly good plan” and that it doesn’t really feel that it’s acceptable to cease monitoring Rodriguez at the moment. Nevertheless, the prosecution did say that it will take into account permitting Rodriguez sure freedoms if petitioned, with out together with any specifics.
The decide didn’t permit for the modification of the bail circumstances and requested each the prosecution and the protection to “get transferring on the case.”
Donate to the authorized protection fund for Rodriguez and Hill by way of BPI’s P2P Rights Fund.
