SDNY may have just dug its own grave in the Samourai Wallet case.

Last week, prosecutors argued that they had not violated the law by failing to disclose conversations with FinCEN, in which senior staff made clear that SW did not need an MSB license in their opinion.

Arguing to moot the defense's request for a hearing on remedies, SDNY argued that, due to the overturning of Chevron, FinCEN's opinion on "ambiguous law" didn't matter, making a crucial mistake now highlighted by the defense:

Prosecutors are not allowed to bring criminal charges based on ambiguous laws, which should always be decided in the defendant's favor.