“We thought we were on the right side of the law,” the Samourai Wallet co-founder tells Reason.
In the world of cryptocurrency, there are few names that stand out like Samourai Wallet. Founded in 2015 by TDev Dega and his partner, the company has been at the forefront of providing secure and private bitcoin transactions. However, their journey has not been without its challenges. In a recent interview with Reason, Dega opened up about the struggles they faced and how they always believed they were on the right side of the law.
Samourai Wallet was created with the aim of providing a private and secure platform for bitcoin transactions. With the rise of government surveillance and data breaches, the need for privacy in financial transactions has become more important than ever. Dega and his team saw this gap in the market and decided to fill it with their innovative wallet.
Their journey began with a simple idea, but it soon turned into a mission to protect the privacy and financial freedom of their users. However, their mission was not without its challenges. In 2018, the team received a letter from Google Play Store, stating that their app was in violation of their terms of service. The reason? The app allowed users to hide their transaction data, which Google deemed as a violation of their policies.
This was a major setback for the company, as the Google Play Store is the primary source of app distribution for Android users. The team was left with two options – either comply with Google’s policies or find a way to work around it. They chose the latter.
Dega and his team worked tirelessly to find a solution that would not compromise the privacy of their users. They came up with a new version of the app, which allowed users to hide their transaction data while still complying with Google’s policies. This was a major win for the company and their users, as they were able to continue providing their services without compromising on their principles.
However, their struggles did not end there. In 2019, the team faced another challenge when they received a letter from the Financial Crimes Enforcement Network (FinCEN). The letter stated that the company was in violation of the Bank Secrecy Act (BSA) for not registering as a money services business (MSB). This came as a shock to the team, as they had always believed that their wallet was not subject to the BSA.
Dega explains in the interview with Reason that they were not aware of the BSA and its requirements, as they were not a traditional financial institution. He also states that they were not trying to evade any laws, but rather, they were simply unaware of the regulations that applied to their business.
This incident led to a lot of speculation and criticism from the media and the cryptocurrency community. However, Dega and his team remained steadfast in their belief that they were on the right side of the law. They hired legal counsel and worked closely with FinCEN to understand the regulations and comply with them.
Their efforts paid off when FinCEN issued a statement clarifying that their wallet was not subject to the BSA. This was a major victory for the company and a validation of their beliefs. Dega states that this incident was a learning experience for them and they are now more aware of the regulations that apply to their business.
Despite the challenges they faced, Samourai Wallet has continued to grow and gain popularity among cryptocurrency users. Their commitment to privacy and security has earned them a loyal user base, who appreciate their efforts in providing a safe and private platform for their transactions.
In conclusion, the journey of Samourai Wallet has been a rollercoaster ride, filled with challenges and victories. Dega and his team have faced criticism and legal battles, but they have always remained true to their mission of providing a secure and private platform for bitcoin transactions. Their story is a testament to the fact that sometimes, being on the right side of the law is not always easy, but it is always worth it.
