Bitcoin Launderers Linked to Samourai Wallet Admit Guilt in $100 Million Crypto Crime
In a significant development, Keonne Rodriguez and William Lonergan Hill, the co-founders of Samourai Wallet, have pleaded guilty to charges related to their cryptocurrency mixer service. The plea comes after the U.S. Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) alleged that the wallet's privacy-focused features facilitated over $100 million in illicit transactions tied to large-scale money laundering and sanctions evasion.
The indictment claims that the Whirlpool and Ricochet features of Samourai Wallet were designed to conceal the origins of Bitcoin transactions, intentionally obscuring their trail to aid criminal activity. Prosecutors allege that these features were instrumental in processing more than $2 billion in illegal transactions.
The DOJ argues that it doesn't have to share the evidence that led to these conclusions. However, internal communications and social media posts suggested that the founders were aware of and promoted such illicit use. The defendants initially denied the charges and mounted legal defenses but ultimately changed their pleas as the DOJ rejected dismissal arguments.
The plea change occurred during a Wednesday morning hearing before Judge Denise Cote. The executives now face charges of conspiring to launder money, punishable by up to 20 years in prison, and operating an unlicensed money-transmitting business, which carries a five-year sentence. Their sentencing is scheduled for November 6, 2025.
The total possible prison time for the pair is 25 years, and they also face a combined fine of up to $237 million. This plea agreement dismisses more severe money laundering conspiracy charges, which could have led to up to 20 years in prison each.
Critics say these lawsuits could set a dangerous precedent by criminalizing open-source development for non-custodial tools that don't hold user funds. Programmers shouldn't be held liable for how autonomous code is used, particularly when there's no direct evidence of intent to commit crimes.
Earlier this year, a blockchain developer filed a lawsuit against the DOJ, accusing it of overreaching by treating creators of non-custodial crypto software as unlicensed money transmitters. The defense of Samourai Wallet co-founders has lodged a new motion, alleging that prosecutors withheld internal communications from FinCEN.
Meanwhile, Tornado Cash co-founder Roman Storm is currently on trial for money laundering, violating U.S. sanctions, and operating an unlicensed money-transmitting business. The trial began in July at a Manhattan federal court. As the crypto industry continues to evolve, these cases are likely to shape the future of privacy-focused cryptocurrency services.
- Despite the ongoing legal battles, the co-founders of Tornado Cash, inspired by the case of Keonne Rodriguez and William Lonergan Hill of Samourai Wallet, are continuing to push the boundaries of blockchain technology and privacy-focused cryptocurrency services.
- As the trial of Roman Storm, co-founder of Tornado Cash, progresses, concerns over the criminalization of open-source development for non-custodial crypto tools persist, with critics arguing that programmers should not be held liable for how autonomous code is used, particularly when there's no direct evidence of intent to commit crimes.
