Former US President Donald Trump indicates that he might consider pardoning Keonne Rodriguez, the CEO of privacy-focused Bitcoin wallet Samourai. Rodriguez was sentenced to five years in federal prison last month on money laundering charges.
This statement reignites discussions around privacy technologies in crypto. It also raises the question of whether similar presidential pardons will come for other convicted developers, such as Roman Storm, the creator of Tornado Cash.
Increased Calls for Amnesty Sparked Frustration in the Cryptocurrency Market
At a press conference on December 15, a journalist asked Trump about the Rodriguez case; he reminded that the case started during the Biden administration but that he continued with the Department of Justice. Trump said the following about the issue: 'I've heard some things about this. I will look into it.' After the president noted that the journalist pointed out strong support for amnesty in the cryptocurrency community, he stated that he would also take this detail into consideration.
Rodriguez (37) and co-founder William Lonergan Hill (67) were convicted of operating a cryptocurrency mixing service. Prosecutors allege that the duo facilitated the laundering of over $237 million in criminal proceeds. Rodriguez was sentenced to five years, while Hill received a four-year prison sentence; both were also fined $250,000.
The announcement sparked various reactions. Some supporters hope that this development could be a driving force for crypto-friendly policies. One X user even called for amnesty for the controversial founder of the collapsed Terra/Luna ecosystem, Do Kwon.
However, critics remind of the overall performance of the cryptocurrency market during the Trump administration. Since he took office, there have been significant declines in major coins; some tokens have lost more than 70% of their value.
The Prosecutor's Case Against the 'Ordinary Developer' Narrative
The Department of Justice (DoJ) provided evidence that Rodriguez and Hill were not just developers of privacy tools. In the sentencing announcement on November 19, prosecutors highlighted that the founders marketed the service specifically to those with criminal proceeds.
According to allegations, Hill introduced Samourai on the darknet forum named Dread and suggested Whirlpool to a user looking for 'safe ways to clean dirty BTC.' Rodriguez was reported to have encouraged passing the proceeds stolen by Twitter hackers in 2020 through the mixing service and expressed his regret when a competitive platform was preferred.
The heaviest evidence in the case was Rodriguez's WhatsApp messages where he defined mixing as 'money laundering for bitcoin.' The company's marketing materials also considered 'participants in the Dark/Grey Market moving funds obtained from illegal activities' as the target group.
According to prosecutors, the sources of criminal proceeds passing through Samourai included drug trafficking, markets on the darknet, cyber attacks, fraud, sanctioned areas, hitman planning, and child pornography sites.
Wider Impacts
This case brings back the issue of the developer's responsibility for user actions on decentralized platforms. Privacy advocates argue that such prosecutions set a dangerous precedent for open-source software development. Law enforcement believes that directly encouraging criminal use exceeds legal boundaries.
Online discussions began to question whether Tornado Cash developer Roman Storm could also be considered for amnesty, especially following his conviction for similar crimes in August. Storm was convicted of operating an unlicensed money transfer business. The jury could not reach a consensus on more serious charges of money laundering and sanctions violations.
Congress continues discussions on cryptocurrency regulations. Although lawmakers have introduced various bills to clarify the legal status of privacy-enhancing technologies, none have yet become law.
Trump had previously granted amnesty to prominent figures in the crypto world, such as Binance's former CEO Changpeng Zhao and Silk Road founder Ross Ulbricht. This stance keeps speculation alive about whether there will be new amnesties in the sector in the future.
