This is a *major* win for DOJ, and a huge huge loss for legislative efforts trying to protect developers from unlicensed money transmission charges. Full article in quoted post.
The Rage's avatar The Rage
In a major win for DOJ, Samourai Wallet developers have plead guilty to unlicensed money transmission. The charge had been heavily disputed, described as an unclear application of the law. The developers face fines and up to five years in prison. Full story👇 https://www.therage.co/samourai-wallet-developers-plead-guilty-to-unlicensed-money-transmission/
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If you work on Bitcoin privacy tools and you're not from the US, you should seriously consider never ever visiting. I'm worried about the toxic territory continuing to expand quickly though...
drea's avatar
drea 5 months ago
⚔️
L0la L33tz's avatar L0la L33tz
This is a *major* win for DOJ, and a huge huge loss for legislative efforts trying to protect developers from unlicensed money transmission charges. Full article in quoted post. View quoted note →
View quoted note →
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Rand 5 months ago
⭕🔓E🎶*****⭕
I was curious why this won't set precent for future cases, so if anyone else is wondering, here's what I found: Here's why that often means it won't create binding precedent: Guilty Pleas Skip the Trial Process: When defendants plead guilty (as Keonne Rodriguez and William Hill did here), they're essentially admitting to the charges without contesting them in court. There's no need for a trial where lawyers argue over evidence, legal interpretations, or the application of laws like the Bank Secrecy Act (which regulates money transmission). Without that adversarial process, the judge doesn't issue a substantive opinion that could interpret the law in a new way. No Detailed Judicial Opinion: In a plea deal, the court's role is mostly to accept the plea, ensure it's voluntary, and impose a sentence. There's rarely a written ruling that analyzes the law deeply enough to serve as precedent. For example, this case doesn't create a "landmark decision" on whether cryptocurrency mixing services (like Samourai's Whirlpool) qualify as money transmission under federal law—it's more of a resolution based on the specific facts and agreement. Lack of Appeals: Precedent often solidifies through appeals, where higher courts review and affirm (or overturn) lower court decisions. A guilty plea typically waives the right to appeal on most grounds, so there's no opportunity for appellate courts to weigh in and create broader case law. Plea Deals Are Fact-Specific: These agreements are negotiated between prosecutors and defendants, often to avoid the risks of trial. They're tailored to the individuals involved (e.g., the developers' roles in operating the wallet) and don't necessarily address bigger questions, like the legality of privacy-focused crypto tools in general. Future cases could still argue different interpretations without being bound by this outcome. Broader Context in Crypto Cases This isn't uncommon in cryptocurrency-related prosecutions. Similar cases, like those involving Tornado Cash or other mixing services, have sometimes gone to trial and set more precedent (e.g., by clarifying what counts as "money transmission"). However, when defendants plead guilty—often to get lighter sentences or avoid harsher charges—it limits the case's impact on the legal landscape. The article might be highlighting this to temper expectations that the pleas will "change the game" for crypto privacy tools.
So. This is the stage where they fight us on all fronts. Act accordingly. Ramp up your opsec. Get rid of centralised infrastructure. AV might be a blessing in disguise. Get rid of your old compromised accounts. Going dark. Regathering in anonymity.
L0la L33tz's avatar L0la L33tz
This is a *major* win for DOJ, and a huge huge loss for legislative efforts trying to protect developers from unlicensed money transmission charges. Full article in quoted post. View quoted note →
View quoted note →
Apiarium's avatar
Apiarium 5 months ago
The US is not really welcoming either way right now for citizens and foreigners trying to travel