TechFlow news, May 18 — According to The Block, defense attorneys in the Samourai wallet and Tornado Cash cryptocurrency cases have raised serious allegations that prosecutors failed to properly disclose a critical phone call that may contain key evidence favorable to the defendants.
The disputed phone call occurred on August 23, 2023, when senior officials from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), including Kevin O'Connor, head of virtual asset enforcement, informed government prosecutors that due to Samourai's non-custodial nature—meaning it does not directly control users' cryptocurrency—the wallet "strongly suggests Samourai is not an MSB (money services business)."
This classification is crucial to both cases, as the defendants face charges of "conspiracy to operate an unlicensed money transmitting business." Despite this call, prosecutors proceeded with related charges in the Tornado Cash case, followed by the Samourai case six months later.
Samourai's legal team called the situation "shocking" and requested a hearing over potential violations of Brady rules, which require prosecutors to provide the defense with all potentially exculpatory evidence. Prosecutors countered that they had "disclosed all material communications months in advance" and described the FinCEN officials' statements as "informal personal opinions."
Samourai co-founders Rodriguez and Hill, along with Tornado Cash co-founder Storm, face multiple charges related to money laundering and sanctions violations over their development of cryptocurrency mixing protocols.
