Unlicensed – Earlybirds Invest

Plea deal

Lee reported that Judge Jed Rakoff pressed Keonne Rodriguez to state his criminal conduct “in his own words.”

Rodriguez told the court that his role at the firm meant that he was aware users were using the wallet “to launder criminals’ money.” Prosecutors argued that the knowledge alone is sufficient for a 60 month sentence even if they were not involved in the laundering.

Shapiro noted that had both counts gone to verdict, combined federal guidelines would have pointed to 160 to 210 months. By pleading to the unlicensed transmission conspiracy under 18 U.S.C. § 1960, the developers face a statutory maximum of five years rather than a potential decade-plus exposure.

Defense‑side reaction framed the outcome as a pragmatic hedge rather than a legal endorsement of the US Department of Justice’s (DOJ) theory.

Amanda Tuminelli, executive director and CLO at the DeFi Education Fund argued that the DOJ “misinterprets Section 1960 whenever they accuse a non‑custodial software dev of ‘transferring funds on behalf of the public,’”

Tuminelli added that the pleas don’t change the policy fight over how the law should apply to open‑source wallet software. She said:

“Plea deals are risk calculations.”

Case background

US and international authorities shuttered Samourai on April 24, seizing its domain and web infrastructure in collaboration with the Icelandic and Portuguese police, the IRS, the FBI, and Europol.

The authorities also issued a warrant that removed the Android app from Google Play for US users.

Prosecutors alleged founders Keonne Rodriguez and William Lonergan Hill ran a mixing service through Samourai that processed more than $2 billion in Bitcoin tied to illicit activity, including $100 million linked to dark‑web markets.

The app, one of the best‑known privacy‑focused Bitcoin wallets, had been downloaded over 100,000 times.

Mentioned in this article

Australia’s financial regulator has issued a warning to Bitget

$4.75B

for offering crypto futures products without proper authorization.

The Australian Securities and Investments Commission (ASIC) said that Bitget, along with its parent company BTG Technology Holdings Limited, has been promoting futures trading services that are not licensed in the country.

According to ASIC, Bitget is not registered under an Australian Financial Services (AFS) licence. This means it is not allowed to advertise or offer its financial products to people in Australia.

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Without this license, investors using the platform do not have access to important protections, including dispute resolution and safeguards for their funds.

The regulator said the warning is part of its ongoing efforts to reduce the risks that come with trading complex and unregulated crypto products, especially for everyday investors.

While licensed firms in Australia must limit crypto derivatives to a 2:1 leverage ratio, Bitget allows users to trade with leverage of up to 125:1.

ASIC explained:

Trading in highly leveraged derivative products can result in substantial losses.

They also reminded investors that dealing with unlicensed providers could make it harder to recover losses or get help if something goes wrong.

Bitget is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), the agency responsible for monitoring financial crime. However, that registration only covers basic crypto exchange services, and it does not give the company permission to offer or promote futures trading.

AUSTRAC recently outlined a new strategy to combat financial crime by naming cryptocurrency platforms as a top priority. What did the agency say? Read the full story.