Latest / Simply Bitcoin / Bitcoiner Charged for Protecting Privacy?! | Simply SatoSHE
Transcript
- 0:00Imagine waking up one day and realizing that your fundamental
- 0:03human rights have suddenly changed, that maybe writing code
- 0:06is no longer considered speech, that privacy is no longer the
- 0:10bedrock of freedom, and that writing software can be treated
- 0:14like a crime. Who decides where that line is
- 0:17drawn, and how far it'll go if we don't stop it?
- 0:20Today I'm breaking down whether the developers behind the
- 0:23Bitcoin privacy wallet Samurai are actually criminals, or a
- 0:27warning of what may be coming from for Bitcoiners and seekers
- 0:31of self sovereignty across the globe.
- 0:33Sadly, some people don't have to imagine this scenario.
- 0:37Today, the developers of Samurai Wallet are surrendering
- 0:40themselves to the US justice system for the crime of writing
- 0:44code. Check out this clip of Keon
- 0:47Rodriguez explaining exactly what Samurai Wallet was.
- 0:51Samurai wallet was a non custodial software wallet.
- 0:56Bitcoin wallet that I and Bill developed in 2015.
- 1:03The point that we were trying, what we were trying to solve
- 1:07with Samurai Wallet was addressing the fundamental
- 1:11privacy concerns that exist on the transparent blockchain that
- 1:16Bitcoin uses. And using mathematics and and
- 1:21and clever tricks, you could say we were able to obtain a pretty
- 1:27basic transactional privacy model for Bitcoin.
- 1:33And Whirlpool was one of those tools, software tools that we
- 1:37created to help improve privacy when transacting on a
- 1:44transparent open Ledger such as Bitcoin.
- 1:46In other words, Samurai Wallet was basically a tool to protect
- 1:50transactions from surveillance on bitcoins public blockchain.
- 1:54Users retained full control of their private keys, with no data
- 1:57shared to central servers by default.
- 2:00The wallet was praised by privacy advocates for promoting
- 2:03financial privacy and censorship resistance, aligning with
- 2:06Bitcoins original cypherpunk roots.
- 2:09But in April 2024, US authorities arrested founders
- 2:13Keon Rodriguez and William, charging them with conspiracy to
- 2:18commit money laundering and operating an unlicensed money
- 2:22transmitter. Prosecutors allege that the
- 2:24privacy tools facilitated over $100 million in illicit
- 2:28transactions, with the service processing billions in volume
- 2:32and earning millions in fees. That makes me wonder how much
- 2:35cash in U.S. dollars gets used for illicit activity every year?
- 2:40And will cash then be considered illegal?
- 2:43Maybe that's why we've seen more in more businesses stop
- 2:47accepting cash since 2020. I don't know, might just be a
- 2:50coincidence. In 2025, both developers pleaded
- 2:54guilty to lesser charges. Rodriguez was sentenced to five
- 2:57years in November and Hill to four years shortly after.
- 3:01Rodriguez will be starting his sentence today on December 19th,
- 3:06and Hill will be starting his sentence on January 2nd of next
- 3:09year. The cypherpunks argue that PGP
- 3:11was like any other published material because under the hood
- 3:14it was just a serious of instructions to be carried out
- 3:17by a machine. Restraint on freedom of
- 3:19expression of software writers is anathema on a free society
- 3:23and a violation of the 1st Amendment, wrote the economist
- 3:25and entrepreneur Phil Salen in a 1991 essay titled Freedom of
- 3:29Speech and Software. Encryption can't be controlled,
- 3:33whether or not it's powerful or has impacts on the government
- 3:37because it's free speech. In the early 90s, John Gilmore,
- 3:41who was a Co founder of the cypherpunk movement, risked
- 3:44going to jail in his campaign to force the government to
- 3:46acknowledge that regulating encryption violated the First
- 3:49Amendment. We basically had a community of
- 3:521000 people scattered around who were all trying different ideas
- 3:56on how to get around the government to get encryption to
- 3:59the masses. Critics view the case as an
- 4:01attack on open source privacy tools and free speech for
- 4:05developers, comparing it to past encryption battles.
- 4:08Precedent is clear in Bernstein versus the DOJ 1996, a court
- 4:14struck down controls on encryption code ruling Computer
- 4:18language is just that, language. And while the courts ruled it a
- 4:22speech, the feds fought for control over citizens under the
- 4:25guise of fighting crime. The Clinton administration told
- 4:28Congress that Americans have no constitutional right to choose
- 4:31their own method of encryption and pushed for legislation that
- 4:34would require companies to build in a mechanism for law
- 4:37enforcement agencies to break in.
- 4:39We're in favor of strong encryption, robust encryption.
- 4:42We just want to make sure we have a trapdoor and a key under
- 4:46some judge's authority where we can get there if if somebody's
- 4:50planning a crime. Later cases doubled down.
- 4:53Universal City Studios versus Corley in 2001 ruled that code
- 4:57is still protected even if machine readable.
- 5:00And Apple's 2015 fight against the FBI, who tried to force devs
- 5:05to write back doors, was ruled compelled speech and therefore
- 5:09unconstitutional. All these cases spell out what
- 5:12is common sense for anyone familiar with the Constitution.
- 5:15Computers code isn't just a tool, it's a form of expression.
- 5:19Programmers use it to communicate ideas, solve
- 5:21problems, and create, just like writers would use words or music
- 5:25composers would use notes. Denying First Amendment
- 5:28protection would crush innovation, privacy, and free
- 5:32speech itself. What Eric meant by Cypherpunk's
- 5:35write code is don't be one of those guys who goes to a
- 5:37Libertarian Party conference and sits at about getting somebody
- 5:40elected to the Los Gatos City Council.
- 5:43That way lies madness. Whereas the interesting things
- 5:48that had happened had been technological changes, the
- 5:50telephone copy machine, the VCR. The philosophy that I really got
- 5:55interested in is that you don't just go and ask the regulator
- 5:58are we need more privacy online. You can fix it.
- 6:00Arguing and complaining and lobbying and politics have
- 6:04nominal effects on what changes the world is technology adoption
- 6:08and, you know, society moving, shifting its viewpoints.
- 6:13For crypto anarchists like May, writing code meant building
- 6:16systems for anonymous transactions on the Internet
- 6:19that made the arbitrary divisions of the political world
- 6:22irrelevant. National borders are just speed
- 6:24bumps on the information superhighway.
- 6:26Code is language. Humans read, write, and debate
- 6:29it. It conveys meaning through
- 6:30syntax and logic. The Supreme Court even protects
- 6:34symbolic speech like flag burning and art.
- 6:37So code qualifies because it looks and acts like speech.
- 6:42The code that me and Bill wrote for Samurai Wallet and Whirlpool
- 6:47was free and open source code. So that code is out there.
- 6:51You can't get rid of it. And shortly after our arrest and
- 6:56take down some brave souls launched a fork of our code.
- 7:00And Samurai wallet still exists and Whirlpool still exists and
- 7:04people are using it. And now what all the government
- 7:06has done is just drive it more underground than to the tour or
- 7:11the dark web. And, and, and you know, these
- 7:15people taking OPSEC incredibly seriously, not having a Twitter
- 7:19handle, not having, you know, social media, just having a, a,
- 7:23a Tor onion address, a, a dark web address, right.
- 7:27So all they've done is drive it underground and, and make it
- 7:32more resilient for the next time.
- 7:33So this stuff is not going away. The code is out there.
- 7:37You know, that's like the Pandora's box.
- 7:38It's open now, there's no putting it back in.
- 7:41Thankfully, bitcoiners and privacy advocates have some
- 7:44allies in government. Believe it or not, I'm.
- 7:47Free and it's because of you. You made this moment possible.
- 7:51You did this. Thank you.
- 7:53And you're not alone. You are part of something much
- 7:55bigger. This is bigger than Bitcoin.
- 7:58This is bigger than crypto. Freeing me took many, many
- 8:01people from all walks of life coming together and saying this
- 8:05is not right. It took many people just like
- 8:07you saying we care about freedom and keeping somebody like Ross
- 8:12in a cage until he dies is a threat to freedom itself.
- 8:16It took President Trump recognizing that an injustice
- 8:21had been done. And that's so many of you
- 8:24demanded that I be. Freed President Donald Trump
- 8:27pardoned Ross on January 21st, 2025 upon taking office,
- 8:32fulfilling a campaign promise that he made to libertarians
- 8:35during his presidential run. He described Olbrich's original
- 8:38sentence to life terms plus 40 years as ridiculous because it
- 8:44was, arguing that it was disproportionate to the crime
- 8:48because it was. Trump also criticized the
- 8:50prosecutors and judges involved, calling them scum and lunatics
- 8:54who were part of the same weaponization of government he
- 8:57claimed was used against him. The pardon of Ulbricht's case
- 9:01supported Trump's broader pro cryptocurrency stance given Silk
- 9:05Roads early use of Bitcoin. In the case of Samurai wallet,
- 9:08Congressman warned Baron Davidson comments on the recent
- 9:12Samurai case by saying he should be pardoned.
- 9:15No charges should have been filed.
- 9:17No trial should have occurred. This is the equivalent of
- 9:19prosecuting gun manufacturers for what someone else does with
- 9:24a gun. Perhaps he agrees with Trump's
- 9:26fight against the weaponization of government and a Justice
- 9:29Department full of scum and lunatics.
- 9:31The bottom line is human beings have a right to privacy and that
- 9:35extends to their online data too.
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- 10:43but now let's talk about protecting your Bitcoin future,
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- 11:52hashing. So is the Samurai case unjust?
- 11:55Absolutely. This sets a scary precedent.
- 11:58Build privacy tech, go to jail. They put you in jail right away.
- 12:04No trial, no nothing. As Ross said, they wrote code
- 12:07that worked too well. Community outrage is huge.
- 12:11Petitions and funds are popping up everywhere, as they should.
- 12:14Bitcoiners need to support one another, especially during times
- 12:18like these. If you can, please sign the
- 12:20petition and maybe donate for the 'cause I'm going to link
- 12:24that in the description of the video below.
- 12:26And most importantly, educate yourself about your First
- 12:29Amendment rights and support candidates who will fight for
- 12:32these rights. If anyone's interested in
- 12:34learning more about the case or interested in signing the
- 12:36petition asking the president to pardon me and Bill, you can do
- 12:41that by going to billandkeone.org.
- 12:44That's BILLANDKEONN. e.org. There's a link right at the top
- 12:50there to sign the petition. Please do.
- 12:53It definitely helps. I was in a Twitter space two
- 12:57nights ago and Ross Olberg joined that Twitter space, the
- 13:01first one that he's ever joined, and it was a really touching
- 13:05moment. We had like a 5 minute
- 13:07conversation, one-on-one together where he showed his
- 13:10support. But one of the things that he
- 13:12said was how important the Change.org petition was to him
- 13:17getting his pardon, that it really does make a difference.
- 13:20So please sign the petition, share it, get your friends and
- 13:23family to sign it. If you've heard me and think,
- 13:27oh, maybe there is something to this, If you've heard me and
- 13:29said no, I'm not convinced, you definitely deserve to go to
- 13:32prison, that's OK too. I am going to prison so don't
- 13:36sign it. All right, before we wrap up the
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- 14:30Now let's wrap up the show. Are you as out raged as I am
- 14:33about the creeping surveillance state, criminalizing code and
- 14:36invading your privacy? If you are, drop a comment and
- 14:39let me know. And if you enjoyed this video,
- 14:42smash the like button, hit the subscribe and turn on the
- 14:45notifications for the most fire Bitcoin only news in the space.
- 14:49I'll see you in the next 1, so remember to stack.
- 14:52Slay and stay bullish, baby.