Crypto Advocacy Groups Urge Dismissal of Case Against Bitcoin Mixer Samourai
Two crypto advocacy groups are advocating for the dismissal of the case against Samourai Wallet, a Bitcoin mixing service that was shut down by the government last year. The groups, including the Blockchain Association and the DeFi Education Fund, argue that Samourai Wallet simply allowed users to conduct financial transactions privately, a right comparable to using cash. They believe that the case, which accuses the platform of operating as an illegal money transmitter, threatens the freedoms of software developers. The U.S. Department of Justice contends that Samourai Wallet was involved in facilitating criminal activities, but advocates insist the developers did not control user funds and therefore should not be prosecuted. This case follows the arrests of the developers in April 2024 and comes amidst broader scrutiny of crypto mixing services in light of past legal actions against similar platforms like Tornado Cash. A federal judge recently denied the admission of amicus briefs from the advocacy groups, further galvanizing their calls for dismissal of the charges. The plaintiffs maintain that under existing laws, the users had independent control over their Bitcoins, thus challenging the definition of money transmitters as stated by FinCEN.
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