Connect with us

legal

Samourai Developers Appear Together In Court For First Time At Status Conference

Published

on



Today, Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill appeared together in court in the Southern District of New York for a status conference.

This was the first time the two made a public appearance together since the US Department of Justice (DoJ) charged the two developers with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business in April 2024. It was also the first time either of them have appeared in court since Hill appeared ahead of his bail release in July and Rodriguez first attended a court hearing in May.

The prosecution addressed the court first, stating that it had produced “voluminous batches of discovery.”

It made the first batch available to the defense in mid-June 2024. This batch featured business records, emails and social media account information amongst other data.

The second batch, which it made available to the defense in mid-August 2024, featured data extractions from the devices that the DoJ seized from the two developers. The DoJ has extracted information from 15 of the 44 devices seized from Rodriguez and 25 of the 27 devices seized from Hill.

The prosecution also stated that it would produce a third batch of discovery containing a “relatively modest” amount of data soon and that it was prepared to proceed with trial.

No Evidence Of Money Transmission

Rodriguez’s attorney made the case that it was premature to set a trial date, as the defense has yet to review all of the discovery made available in mid-August 2024. The defense also said that it has yet to come across any evidence showing that Rodriguez or Hill operated an unlicensed money transmitting business.

Hill’s attorney stated that they’ve received 8 terabytes worth of discovery. To put this amount of data in context, he explained that this was the equivalent of 75% of the amount of information in the Library of Congress and that, if one printed this information, one could stack the paper it was printed on “to the moon and back 22 times,” making the point that it would be hard to sort through and review.

Hill’s attorney also referenced the letter from Senators Cynthia Lummis (R) and Ron Wyden (D) in which the lawmakers stated that the DoJ’s unprecedented interpretation of the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) statute regarding operating an unlicensed money transmitting business contradicts the intent of the rule. For this reason, he proposed a motion to dismiss the charge.

The judge denied this request and scheduled a follow-up hearing for December 17, 2024 at 10 AM ET.

Rodriguez’s Request For Bail Modifications

In the second portion of the conference, Rodriguez’s lawyer requested two modifications to Rodriguez’s bail conditions. He requested that the court remove Rodriguez’s home detention mandate and that the court modify restrictions on Rodriguez’s ability to transact with cryptocurrency, some of which was proceeds from Samourai. (Zack Shapiro, Legal Fellow at the Bitcoin Policy Institute (BPI) later explained to me that the second modification was requested in part so that Rodriguez could use bitcoin proceeds from Samourai to pay for legal fees.)

Rodriguez’s attorney argued that home detention was “unduly restrictive” and “unnecessary,” and that Rodriguez isn’t a flight risk. The defense also cited two instances in which Rodriguez had the opportunity to flee but didn’t in its efforts to make the case that Rodriguez no longer needed to wear a location monitoring device.

The prosecution pushed back, arguing that Rodriguez’s home detention was necessary to ensure that Rodriguez continued to appear for trial. It also stated that the charges being levied against Rodriguez for running a “cryptocurrency money laundering business” were severe and that Rodriguez was potentially facing a potential sentence of up to 25 years.

The prosecution went on to cite evidence from handwritten pages that it had obtained from Rodriguez’s home containing details about how he would flee the country to a jurisdiction from which it would be difficult to extradite him. This information included a list including different passports as well as having $10,000 in cash, a burner phone, an unused SIM card, and various mnemonic phrases for crypto assets amongst other items.

Rodriguez’s lawyer argued that this plan applied to what Rodriguez would do in the case of a more general emergency, while the prosecution argued that this was Rodriguez’s current escape plan.

The prosecution stated that it was “a pretty good plan” and that it doesn’t feel that it’s appropriate to stop monitoring Rodriguez at this time. However, the prosecution did say that it would consider allowing Rodriguez certain freedoms if petitioned, without including any specifics.

The judge didn’t allow for the modification of the bail conditions and asked both the prosecution and the defense to “get moving on the case.”

Donate to the legal defense fund for Rodriguez and Hill via BPI’s P2P Rights Fund.





Source link

coinbase

U.S. SEC Asks NY Court to Deny Coinbase’s ‘Breathtakingly Broad’ Subpoena Request

Published

on



The request for Gensler’s personal communications appears to have been a bridge too far for the SEC, which has described the subpoena as a “blatant impropriety.” In a letter to the court on June 28, the SEC argued that the judge overseeing the case, District Judge Katherine Polk Failla of the Southern District of New York (SDNY), should reject Coinbase’s request.



Source link

Continue Reading

legal

The BITCOIN Act of 2024

Published

on



Following the announcement on July 27th at the Bitcoin conference in Nashville, the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide” or BITCOIN Act of 2024, introduced by Senator Cynthia Lummis of Wyoming, seeks to firmly establish Bitcoin as a strategic asset in the United States’ financial arsenal. At its core, the Act proposes the creation of a Strategic Bitcoin Reserve (SBR) and a structured Bitcoin Purchase Program, and comprehensive national custody policy. While the bill is quite brief, what follows is a breakdown of the Act’s key provisions, their implications, and the innovative funding mechanisms employed.

The Strategic Bitcoin Reserve

The establishment of the SBR signifies a paradigm shift in how the United States government manages and custodies Bitcoin at the Federal level. Mirroring many of the best practices currently discussed in the field, such as geographically distributed keys, a cold storage mandate, and independent proof-of-reserves audits, the SBR creates a decentralized network of secure Bitcoin storage facilities across the United States. (Notably not mentioned, however, is a multi-signature system, however it is not explicitly prevented either.) The Act thereby aims to protect against breaches and vulnerabilities to a single catastrophic event.

Bitcoin Purchase Program

The Act lays out a plan to acquire up to 1,000,000 Bitcoins over a five-year period, capping purchases at 200,000 Bitcoins annually, and then holding such reserves for twenty years. Furthermore, the Act places limits on the use and sale of the reserve following the holding period. During the minimum holding period, no Bitcoin held by the Federal government in the SBR may be sold, swapped, auctioned, encumbered, or otherwise disposed of for any purpose other than retiring outstanding Federal debt instruments.

Funding the Bitcoin Purchase Program

In order to minimize the impact on taxpayers, the Act employs several methods to finance the acquisition of Bitcoin, ensuring economic sustainability without increasing Federal debt.

It first proposes an amendment to the Federal Reserve Act to reallocate discretionary surplus funds from the Federal Reserve Banks. This reduces the discretionary surplus funds from $6.825 billion to $2.4 billion. The Federal Reserve is then required to remit net earnings to the Treasury, and the Act redirects the first $6 billion towards purchasing Bitcoin.

Furthermore, the Act also involves an adjustment in the valuation of gold certificates held by the Federal Reserve. Currently, the Federal Reserve holds gold certificates which are marked at $42.22/oz, while the market price of gold is closer to $2,400 today. Essentially, this forces the Federal Reserve to mark-to-market the gold certificates, then remit the gain on the gold to the Treasury for the purpose of funding the initial acquisition.

State Participation

The Act contemplates accepting State-level Bitcoin holdings into the national framework through voluntary participation. This aspect allows individual states to store their Bitcoin holdings within the SBR in segregated accounts. By offering this option, the Federal government allows (but does not require) States to add Bitcoin to their own treasuries, without having to reinvent and reimplement a robust security plan.

States participating in the program maintain exclusive and segregated title to their Bitcoin, and the right to withdraw or transfer their Bitcoin holdings from the SBR, subject to the terms of their contractual agreement and any applicable Federal regulations, but are not subject to the Federal restrictions otherwise applicable to the SBR. This flexibility ensures that States can manage their Bitcoin treasuries in accordance with their specific financial strategies and needs.

Implications & Next Steps

By tapping into existing financial resources and leveraging the economic value of gold, the BITCOIN Act aims to acquire Bitcoin without directly burdening taxpayers or increasing federal debt. This multifaceted approach underscores the innovative financial strategies the Act employs to integrate Bitcoin into the national reserve system, setting the stage for a comprehensive Bitcoin policy throughout all levels of the United States government.

Readers who wish to support the Act should contact their legislators, either directly or through a tool such as this one built by the Satoshi Action Fund.

This is a guest post by Colin Crossman. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.



Source link

Continue Reading
Advertisement [ethereumads]

Trending

    wpChatIcon