Bitcoin Launderers Behind Samourai Wallet Admit Guilt in $100 Million Scam
In recent developments, the U.S. Department of Justice (DOJ) has pursued criminal cases against crypto software developers, raising concerns about the potential liability of open-source developers, particularly those creating privacy tools.
The separate lawsuit accusing the DOJ of targeting non-custodial crypto software creators could influence the future treatment of open-source developers under U.S. law. This lawsuit comes in the wake of the prosecution of the co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, who have pleaded guilty in a federal money laundering case involving over $100 million.
According to court documents, Samourai Wallet processed more than $2 billion in transactions tied to illegal activities. The DOJ identified two key wallet features, Whirlpool and Ricochet, that were used to disguise the source of Bitcoin funds. Over $100 million of these transactions were reportedly from darknet platforms like Silk Road.
The founders' trial follows similar actions against other crypto privacy platforms, and the outcome could set a precedent for how open-source developers are treated under U.S. law moving forward. The trial for Roman Storm, the co-founder of Tornado Cash, who is currently on trial for related charges, including violating U.S. sanctions, is related to the use of Tornado Cash by illicit actors, similar to the allegations against Samourai Wallet.
Advocates and industry stakeholders argue that developers are analogous to manufacturers of neutral tools and should not be held liable for how others use their open-source code. This perspective is reflected in ongoing amicus briefs filed by notable crypto organizations opposing the DOJ’s motions and supporting developers' rights.
Regulatory figures such as SEC Commissioner Hester Peirce have publicly advocated for protecting privacy-enhancing technologies and open-source development, emphasizing that developers should not be prosecuted merely for providing software that can be used lawfully or unlawfully by others.
New laws like the CLARITY Act of 2025 aim to create clearer regulatory frameworks for digital assets, but do not yet provide explicit protections or exemptions for developers of privacy tools themselves. The Act intends to balance investor protections with incentives for innovation but does not directly address criminal liability concerns around open-source software developers.
The defense team for Rodriguez and Hill has filed multiple motions to dismiss the charges against them, including one citing a DOJ policy memo as a reason for the motion. Operating an unlicensed money-transmitting business is also among the charges, adding another five years to the potential sentence. The charges against the founders of Samourai Wallet include conspiracy to launder money, which carries a maximum sentence of 20 years.
The trial for Roman Storm began in July in a Manhattan court, with prosecutors taking a similar stance, citing the tool's use by illicit actors. Despite these ongoing legal challenges, the prevailing legal debates and expert regulatory opinions advocate for limiting the liability of open-source developers. The situation remains unsettled without definitive legal protections, meaning developers continue to operate under a cloud of uncertainty, pending legislative or judicial clarity.
- The lawsuit against the Samourai Wallet co-founders, Keonne Rodriguez and William Lonergan Hill, involves a cryptocurrency, as they have pleaded guilty in a federal money laundering case surrounding over $100 million worth of Bitcoin transactions.
- The trial of Roman Storm, the co-founder of Tornado Cash, shares similarities with the case against Samouria Wallet, as both are being prosecuted under U.S. law for their respective cryptocurrency privacy platforms' alleged involvement in illegal activities.
- As the DOJ continues to pursue criminal cases against crypto software developers, questions surrounding the liability of open-source developers, especially those creating privacy tools, are being raised in the realm of general-news and crime-and-justice discourse.
