US Pushes Maximum Sentence for Samourai Wallet Developers
US prosecutors have urged a judge to impose maximum federal sentences on three Samourai Wallet developers. Samourai Wallet is a leading Bitcoin privacy wallet accused of operating an unlicensed money transmitter. The DOJ says its Whirlpool and Ricochet features processed over $237 million in illicit Bitcoin transactions linked to drug trafficking, darknet markets, hacks and fraud. Prosecutors also allege new ties to murder-for-hire and child pornography. Each developer faces up to 20 years in prison. In the latest update, the defendants plead not guilty and argue they never held user funds. Their defense calls for probation, citing FinCEN guidance and cypherpunk principles. Traders should watch this case. The ruling could set a key precedent for privacy wallets, shape crypto regulation and influence Bitcoin market sentiment.
Bearish
The maximum-sentence push highlights intensifying regulatory scrutiny on Bitcoin privacy tools. A harsh ruling may reduce user confidence in non-custodial wallets like Samourai Wallet and curb demand for privacy features. In the short term, traders could see increased sell pressure on Bitcoin amid uncertainty over compliance. Longer term, stricter enforcement may slow innovation in privacy protocols and deter institutional adoption of privacy-focused solutions. Overall, this negative regulatory development is likely to weigh on Bitcoin’s market sentiment and price trajectory.