Advocates say prosecution of Samourai Wallet developers threatens innovation and misapplies federal law
Growing pressure is building around the fate of two Samourai Wallet developers whose convictions have ignited a broader argument over digital privacy and the boundaries of financial regulation. Supporters claim the case marks a turning point for how the United States treats non-custodial software and the developers who build it.
The developers, Keonne Rodriguez and William Lonergan Hill, face multi-year federal sentences after pleading guilty to charges related to operating an unlicensed money-transmitting business. Their supporters argue that non-custodial tools do not handle or control user funds, making the application of money-transmission rules a significant overreach. Although a laundering charge was withdrawn, both men are scheduled to report to federal prison in early 2026 unless a presidential pardon is issued.
Policy Group Calls for Clear Rules
The Bitcoin Policy Institute has urged the administration to issue clemency, asserting that federal regulations under the Bank Secrecy Act were never designed to cover software that simply enables users to manage their own assets. The organization warns that allowing the convictions to stand could create a chilling effect on privacy-enhancing technologies and push American developers to work overseas.
A growing petition—now exceeding 3,200 signatures—reflects rising concern among researchers, technologists, and everyday users. Many view the case as a test of whether the U.S. intends to protect open-source development, financial privacy, and innovation at a time when digital rights face increasing pressure.
As the reporting date approaches, the outcome is seen as carrying implications far beyond one prosecution. For many advocates, the decision will help determine how the nation approaches privacy-focused financial tools and the future of open-source freedom.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.