William Lonergan Hill, who was arrested in April along with Samurai Wallet co-founder Keon Rodriguez on federal charges of money laundering and operating an unlicensed money transmitting business, has been granted bail by the U.S. government, although specific terms have yet to be determined.
According to a recent letter from Hill’s lawyers, the two parties have agreed to Hill’s release on bail but disagree on where he should spend his time. The lawyers argue that the 65-year-old developer, who grew up in Brooklyn and later moved to Paris and then Portugal, should be allowed to remain in Portugal with his wife. Department of Justice prosecutors want Hill to remain in his sister’s basement in Brooklyn, according to the Justice Department. Filingfirst discovered in print anger.
Rodriguez has already pleaded not guilty to two charges and is free on $1 million bail, but Hill’s “very strong bail fund” is made up of assets worth at least $3 million, according to the letter. If the court agrees to release Hill to Portugal, his bail will be increased to about $4.4 million through pledges from his wife and family. “…all are betting their financial futures on Hill complying with the bail conditions,” the letter states.
Hill disputes the charges.
The letter said Hill, along with his co-founders, plans to contest the charges. Hill’s lawyers noted that the case is expected to involve significant discovery and a number of pretrial proceedings, meaning a trial could take place “well into 2025.”
In their letter, Hill’s lawyers also laid out several arguments in support of Hill, ranging from legal analysis to public endorsements, which may preview the defense’s arguments in the upcoming trial.
In one interesting argument, Hill’s lawyers point out that Samurai Wallet was available on Google’s App Store from its release in May 2015 until April 2024, at which point Google delisted the app following the arrest of its two co-founders. The defense argues that if Samurai Wallet was intended as a money laundering service, then by the government’s own logic, Google would be an unindicted co-conspirator for providing the app to some 4 billion Android users around the world.
Additionally, the defense argues that the money laundering conspiracy charge relies on the allegation that SamuraiWallet was an unlicensed money transmitter, contrary to FinCEN guidance at the time: “If SamuraiWallet was not a money transmitter, it had no obligation to prevent money laundering under FinCEN guidance. [Bank Secrecy Act]” the letter reads.
The motion also includes a bipartisan letter to Attorney General Merrick Garland from Senators Cynthia Lummis and Ron Wyden, arguing that “criminally prosecuting developers of non-custodial cryptocurrency software as unregistered money transmitters flies in the face of established law.” [FinCEN’s guidance] And that will only stifle innovation and undermine confidence in the Department of Justice’s rule of law.”
Hill is scheduled to make her initial appearance in the U.S. District Court for the Southern District of New York on July 9 or 10, according to the letter.
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