Samourai Wallet, Hill’s Defense: “If Money Was Laundered, Google Is an Accomplice”
William Lonergan Hill, co-founder of Samourai Wallet, has been released on bail, but the specific conditions are still under discussion
William Lonergan Hill, co-founder of Samourai Wallet, was arrested in April along with his colleague Keonne Rodriguez on federal charges of money laundering and running an unlicensed money transmission business. Recently, Hill was released on bail, but the specific conditions are still under discussion.
Context and Details of the Arrest
Hill, 65, is a developer who has lived in Brooklyn, Paris, and finally in Portugal. He was arrested in April for alleged money laundering activities through Samourai Wallet, a cryptocurrency app available on the Google App Store from May 2015 until April 2024, when Google removed it following the arrest of the co-founders.
Bail Dispute
Hill’s defense has proposed that he may remain in Portugal with his wife during the bail period. However, prosecutors from the Department of Justice prefer that Hill resides in his sister’s basement in Brooklyn. This dispute is still ongoing and will be decided by the court.
Bail Conditions
Hill’s bail includes $3 million in assets. If the court allows Hill to remain in Portugal, it would increase to $4.4 million, supported by guarantees from his wife and family members. The defense argues that the family has “bet their financial future” on Hill’s compliance with the bail terms.
Court Appearance and Defense
Hill’s first appearance at the United States District Court for the Southern District of New York is scheduled for July 9 or 10. Like his co-founder Rodriguez, Hill intends to contest the charges. The defense expects that the trial could be postponed until 2025 due to the large amount of evidence to be examined and numerous pre-trial actions anticipated.
Defense Arguments
Hill’s defense has presented various arguments in his favor, including legal analyses and letters of support from prominent individuals. One of them emphasizes that if Samourai Wallet was a money laundering service, Google would be an unindicted co-conspirator for offering the app to nearly 4 billion Android users. Additionally, the defense argues that the money laundering conspiracy charge hinges on Samourai Wallet being an unauthorized money transmission business, contrary to FinCEN guidelines at the time.
Senators’ Intervention
The documentation includes a letter from Senators Cynthia Lummis and Ron Wyden. The two senators wrote to Attorney General Merrick Garland, stating that prosecuting developers of non-custodial cryptocurrency software as unregistered money transmitters contradicts the well-established interpretation of FinCEN guidelines and could stifle innovation.