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US prosecutors are considering dropping charges against Samourai Wallet based on new Department of Justice encryption enforcement matters

Internet reports that prosecutors in New York are suspected to be re-evaluating whether to drop the indictment against Keonne Rodriguez and William Lonergan Hill, co-founders of the privacy wallet Samourai Wallet. According to court documents filed on Monday, the prosecution and defense jointly requested the judge to grant a 16-day extension for prosecutors to decide on follow-up actions based on a new policy memorandum from Deputy Justice Minister Todd Blanche. In a memorandum on April 7, Blanche announced the dissolution of the Department of Justice's Cryptocurrency Enforcement Team (NCET) and directed that it stop prosecuting crypto exchanges, hybrid services and offline wallets solely for end-user behavior or inadvertent violations of regulations. The memorandum requires a re-review of all cases under review for compliance with the new policy. Rodriguez and Hill were charged in April 2023 with conspiracy to launder money and operating a remittance business without a license and face up to 25 years in prison. Prosecutors accused his wallet of facilitating $2 billion in illegal transactions between 2015 and 2024, making a profit of $4.5 million. Defense lawyers first invoked Blanche's memorandum on April 10 to withdraw the lawsuit, and the two sides held talks on April 24.

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