The recent indictment of Samourai Wallet's founders has sparked a significant debate regarding the legal classification of non-custodial privacy tools like Samourai Wallet as money service businesses (MSBs). Legal experts and commentators are discussing the implications of this classification under U.S. law, with opinions varying from it being a reasonable categorization to an overreach of legal boundaries. This case is seen as setting a precedent for how similar privacy-focused financial tools might be treated legally in the future. Additionally, the broader implications for financial privacy and the rights to private, self-hosted financial services are being hotly debated, amidst concerns that this could lead to more stringent control over personal financial transactions by states. The indictment notes that the "defendants knew it was a haven for criminals," linking it to other cases like Tornado Cash, and coincides with actions like Phoenix Wallet exiting US app stores.
Cursory thoughts RE: the Samourai Wallet indictment 1. Noncustodial P2P software is not a money service business. Putting aside the question of how SW's founders intended their platform to be used, their software should not be classified or regulated as if it were an MSB. As…
ATTACKS on #Bitcoin CONTINUE! With Samourai founders arrested, the FBI’s WARNING about non-KYC money transmitting services, and Phoenix Wallet exiting US app stores.. Is Government paving the way for a CBDC dystopia and a sequel to 6102? Dante brings the heat and the HOPE.👇 https://t.co/qpfknLiOX4
I wrote this about the absurd indictment of the Tornado Cash founders, and it applies perfectly today to the same charge being brought against @SamouraiWallet. The DoJ is seeking to create expansive new laws through prosecution, instead of via legislation. https://t.co/N2DLqXlx1K
Financial Privacy on #Bitcoin is UNDER ATTACK! Dante explores the right to PRIVACY amidst the criminal charges brought against the founders of Samourai. PLUS a slowing US economy, rising inflation, Bitcoin ETFs, AND is there really such a thing as a “Rare sat”? Let’s dive in👇 https://t.co/pICtqPYJXf
NEW: Lawyer @zackbshapiro explains how the legal classification of Samourai Wallet as an MSB sets a precedent for how similar non-custodial privacy tools might be viewed under U.S. law 👀😮 https://t.co/boilkPViXf
Samourai indictment isn't great, but honestly my biggest frustration with it is the complete lack of relevant factual details. The MSB claim could be anything from "well yeah, sure, that makes sense" to "this is completely insane and beyond the scope of the statute" on the facts…
We all know the news about @SamouraiWallet and @SamouraiDev, but what is next? For my latest at @Forbes I asked this to @zackbshapiro from @btcpolicyorg Privacy matters. https://t.co/BjJkFUN3i2
On Tornado, Samourai, and laws against self hosted wallets, etc - all part of the same theme. States desperately want “control” over money almost as much as they want seignorage rights. “Control” means that a judge can order the assets seized/transferred, which requires some…
There's lot to process (legally speaking) on mixers lately. The latest is the Samourai Wallet action: But an imporatnt subtext that stands out to me, at least: "defendants knew it was a haven for criminals" (So let's start with table-setting. First-principles). This feels… https://t.co/qihVLWaxTP