The co-founder of Zamora Wallet was released on $1 million bond after pleading not guilty
The founders of Zamora Wallet have been accused of money laundering and unauthorized trading. One of his accomplices, Keon Rodriguez, pleaded not guilty in a NYC court and was released on $1M bond. The legal process raises concerns about the future of non-custodial crypto services in the US
Zamora Wallet founder Keon Rodriguez pleaded not guilty to charges brought against him and his partner William Hill and Assistant United States Attorneys Wednesday in the U.S. District Court for the Southern District of New York. $1 million bond, with travel restrictions.
The indictment against Rodriguez and his partner, William Hill, alleges that Zamora Wallet facilitated more than $100 million in money transfers from illegal dark web markets. The two were arrested on April 24 in different states.
Keonne Rodriguez's bail conditions
Despite being released on a $1 million bond, Rodriguez is restricted from travel to certain areas of New York and Pennsylvania. He will be confined to his home in Harmony, Pennsylvania and required to wear a location monitoring device.
Rodriguez is also barred from engaging in any cryptocurrency transactions without prior court approval.
Rodriguez's case is scheduled to continue in New York's Southern District Court, where Rodriguez is scheduled to appear again on May 14 before Judge Richard M. .
The outcome of the lawsuit could have a major impact on the cryptocurrency industry.
William Hill, the chief executive officer of Zamora Wallet Technology and the main defendant, has not yet been arraigned in any US court, although he was arrested on the same day as Rodriguez. This is likely because Hill is being held in Portugal, meaning authorities are likely working through the extradition process.
Implications of the legal proceedings of the samurai wallet
The arrests of Rodriguez and Hill and subsequent legal proceedings have sparked debate over the definition of unregulated wallets as money service businesses.
Allegations of Samurai Pocket facilitating money transfers from illegal dark web markets raise questions about the broader implications of self-sustaining tools in the cryptocurrency ecosystem.
As previously reported, self-sustaining crypto wallets such as Wasabi Wallet and Phoenix continue to limit legal proceedings for fear of US users following the arrest and indictment of the founders of Samurai Wallet and the Metamask investigation.
The case is against the Department of Justice's (DOJ) interpretation of the guidelines issued by the Financial Crimes Enforcement Network (FinCEN) regarding money transfer services, including the transfer of transactions and the collection of payments, the scope of the money services business.
The lawsuit also raises concerns about possible efforts for KYC (Know Your Customer) on the Bitcoin network, by miners, node operators and other parties involved in crypto transactions.
The FBI has issued a public service announcement urging caution regarding cryptocurrency money services businesses that do not require KYC information.
