The SDNY, Southern District of New York (also called the Sovereign District of New York as a joke) is by far the wildest Federal Court in the US for how they manage to defy what they are supposed to do and get away with it. Examples of this include the Tornado Cash case against Roman Storm as well as the the Samourai case where
the defense team for Hill and Rodrguez learned as per a Brady request that two high-ranking members of the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) “strongly suggested” that Samourai Wallet wasn’t serving as a money transmitter due to the noncustodial nature of the service, the prosecution proceeded anyway.
Months before the defendants plead guilty to avoid facing not only a Court with a high conviction rate but a Judge known for her tough sentences.
Deputy Attorney General Todd Blanche issued a memo entitled “Ending Regulation By Prosecution” in which he stated “the Department [of Justice] will no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users…”
The SDNY seemed to disregard the language in this memo, though, as it proceeded with the Samourai Wallet or Tornado Cash cases.
Someone needs to be held responsible for this and someone should face whatever penalty is possible because it is inexcusable for the judicial branch to purposely violate an executive order. If the executive order is ruled against in the courts and the path is cleared that is one thing but to just do this when the order is still in place is just insane.