samouraiwallet

Co-founders of the Samourai Wallet cryptocurrency wallet, Keonn Rodriguez and William Lonergan Hill, "repeatedly incited, encouraged, and urged criminals" to use their platform to conceal illegal funds. This was stated by U.S. prosecutors in a sentencing memorandum.
Authorities claim that the defendants intentionally created and promoted a cryptomixer in criminal circles for personal gain.

U.S. federal prosecutors are seeking maximum sentences for the founders of Samourai Wallet, who have admitted to running an unlicensed money transmission business and facilitating the laundering of hundreds of millions of dollars in illicit funds.

Samourai Founders Under Fire
Founders William Lonergan Hill and Keonne Rodriguez have pleaded guilty in a case that has become a symbol of the clash between privacy and regulation in crypto. According to U.S. prosecutors, the pair actively promoted their wallet to criminals on the darknet, fully aware that it was being used to conceal illegal transactions.
Documents filed with the Southern District of New York describe how the duo “repeatedly encouraged and invited criminals” to use Samourai Wallet, turning the platform into a “safe haven for money laundering and sanctions evasion.”
Evidence cited by prosecutors includes a 2018 WhatsApp message in which Rodriguez described the wallet’s mixing feature as “money laundering for Bitcoin.” Hill allegedly promoted the Whirlpool service on darknet forums, claiming it could help users “clean dirty BTC” and make their transactions “untraceable.”

Over $6 Million in Fees
Investigators say Samourai Wallet earned more than $6.3 million (roughly 246 BTC) in fees from its mixing services between 2015 and 2024. With Bitcoin’s surge in value, those coins are now worth around $27 million.
Prosecutors allege that these funds were tied to drug trafficking, cyberattacks, child exploitation materials, murder-for-hire schemes, and other illicit activities. Both founders, they claim, knew exactly how their tools were being used by criminals.

Prosecutors Seek Maximum Sentence
Federal prosecutors are urging the court to impose the full five-year sentence for conspiracy to operate an unlicensed money transmission business under 18 USC § 371.

The probation office has recommended a lighter punishment — 42 months in prison each — but the final decision rests with the judge.
Sentencing is scheduled for November 6 for Rodriguez and November 7 for Hill in the Southern District of New York.

How It All Began
U.S. authorities shut down Samourai Wallet in April 2024, accusing it of facilitating unlicensed money transfers and helping criminals launder illicit proceeds through its privacy features.
Rodriguez was arrested in the United States, while Hill was detained in Portugal and later extradited to face trial in the U.S. Both men pleaded guilty in July 2025, setting the stage for this week’s sentencing.
The Samourai Wallet case has become a landmark in the ongoing debate over where privacy ends and criminal conduct begins. The upcoming verdict is expected to shape how U.S. regulators approach developers of privacy wallets and crypto mixers going forward.


#bitcoin , #Cryptolaw , #crypto , #Regulation , #SamouraiWallet

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“