President Donald Trump stated that he would consider a pardon for Kion Rodriguez, the representative of the privacy-centric Bitcoin wallet 'Samurai', who was sentenced to five years in federal prison last month for money laundering charges.
This statement has reignited the debate over privacy technology in cryptocurrency. Additionally, questions have arisen about whether other convicted developers, such as Roman Storm of Tornado Cash, could receive presidential pardons.
Calls for expanded pardons… Market dissatisfaction
During a press briefing on December 15, a reporter asked about the Rodriguez case. It was explained that while the case began under the Biden administration, it continued under Trump’s Department of Justice. Trump responded, 'I have heard about it. I will look into it.' When the reporter mentioned that there is a strong call for pardons within the cryptocurrency community, the president stated he would review the matter further.
Rodriguez (37) and co-founder William Lonergan Hill (67) were convicted of operating a cryptocurrency mixing service. The prosecution determined that the two helped launder over $237 million in criminal proceeds. Rodriguez was sentenced to five years, Hill to four years, and both received a fine of $250,000.
This news has elicited a variety of reactions. Some supporters expect that this decision will provide new momentum for cryptocurrency-friendly policies. One X user even requested a pardon for Kwon Do-hyung, who faced controversy due to the collapse of the Terra/Luna ecosystem.
On the other hand, some critics pointed to the overall sluggishness of the cryptocurrency market during President Trump’s tenure. Since he took office, the prices of major cryptocurrencies have significantly dropped, with some tokens losing over 70% of their value.
Prosecution rebuts 'simple developer' claim
The Department of Justice presented evidence arguing that Rodriguez and Hill are not merely simple privacy tool developers. According to the sentencing announcement on November 19, the prosecution stated that the two founders actively promoted their services to criminal users.
Hill reportedly answered a user’s question on the darknet forum Dread about how to safely launder 'dirty BTC' by stating that Whirlpool was a superior method. Rodriguez encouraged Twitter hackers in 2020 to conduct money laundering through their mixing service, expressing disappointment when they used a competitor instead.
The most damning evidence was that Rodriguez directly described mixing as 'Bitcoin money laundering' in a WhatsApp message. The company's marketing materials also stated that they primarily target 'participants in dark/gray markets conducting illegal fund transfers.'
The prosecution revealed that the criminal funds processed by Samurai originated from drug trafficking, darknet marketplaces, cyber intrusions, fraud, sanctioned countries, contract killings, and child pornography websites.
Expanded influence
This case has reignited the debate over developer liability for actions taken by users on decentralized platforms. Privacy advocates argue that this indictment sets a dangerous precedent for open-source software development as a whole. Meanwhile, law enforcement emphasizes that actions actively encouraging criminal use have crossed legal boundaries.
Online, there are questions regarding whether Roman Storm, the Tornado Cash developer who was convicted of similar charges in August, could also be a candidate for a presidential pardon. Storm was convicted of operating an unlicensed money transmission business. The jury did not reach a consensus on the more serious charges of money laundering and violations of North Korean sanctions.
The U.S. Congress continues to discuss cryptocurrency regulations. Various bills aiming to clarify the legal status of privacy-enhancing technologies have been introduced, but no laws have been enacted yet.
President Trump has previously pardoned several cryptocurrency figures, including former Binance CEO Changpeng Zhao and Silk Road founder Ross Ulbricht. Consequently, expectations for future pardons related to the cryptocurrency industry are growing.
