President Donald Trump said he would consider a pardon for Keonne Rodriguez, the CEO of the privacy-focused Bitcoin wallet Samourai, who was recently sentenced to 5 years in federal prison last month for money laundering
This statement has rekindled the debate over the privacy technology of digital currencies, raising questions about whether other developers convicted, like Roman Storm from Tornado Cash, will receive similar pardons.
The additional request for a pardon encountered dissatisfaction in the market.
During a press conference on December 15, a reporter asked Trump about Rodriguez's case, noting that it started during the Biden administration but continued in his Justice Department. Trump responded, 'I have heard about this matter. I will consider it,' and the president further mentioned that he would look into it after the reporter brought up widespread support for pardons in the crypto community.
Rodriguez, 37, and William Lonergan Hill, 67, co-founders, were convicted of operating a crypto mixing service, with prosecutors stating that both facilitated money laundering from crimes exceeding 237 million USD. Rodriguez was sentenced to 5 years in prison, while Hill was sentenced to 4 years, and both were fined 250,000 USD.
The announcement received mixed reactions, with some supporters expressing hope that this decision would create momentum for crypto-friendly policies. One X user even called for the expansion of pardons to Do Kwon, the founder of the collapsed Tara/Luna system.
However, critics highlighted the overall market situation during Trump's presidency, noting that since he took office, there has been a significant downturn in major cryptocurrencies, with some coins dropping over 70%.
The prosecution's case against the concept of ordinary developers.
The Department of Justice presented evidence challenging the view of Rodriguez and Hill as merely developers of privacy tools, as according to a judgment announcement on November 19, prosecutors demonstrated that both founders actively promoted their services to crime-related users.
Hill was accused of promoting Samourai on Dread, a dark web forum, by responding to users seeking a safe way to clean illegally obtained BTC, by recommending using Whirlpool, which is superior to other options. Rodriguez was also identified as having supported a Twitter hacker group in 2020 to transfer stolen money into the mixing service, and he expressed disappointment that they chose to use a competitor instead.
The most damaging thing is that Rodriguez once described mixing coins as money laundering for Bitcoin in a WhatsApp message. Meanwhile, the company's marketing materials acknowledged targeting groups of participants in the dark/grey market who move money from illegal activities.
Prosecutors indicated that the criminal money processed through Samourai originated from drug trafficking, the online black market, hacking, fraud, sanctioned areas, murder plots, and child pornography websites.
Widespread impact.
This case has sparked renewed debate about the liability of developers for user actions on decentralized platforms, with privacy advocates seeing this prosecution as a dangerous precedent for open-source development, while law enforcement officials continue to assert that promoting illegal use is a clear violation of the law.
The online discussion has expanded to the issue of whether Roman Storm, a developer of Tornado Cash who was convicted of similar charges in August, may receive a pardon, as Storm was found guilty of operating an unlicensed money transmission business, while the jury could not reach a verdict on the more serious charges of money laundering and sanctions violations.
Meanwhile, Congress continues to debate the regulation of cryptocurrency, with lawmakers proposing several bills to clarify the legal status of privacy-enhancing technologies, although none have yet passed into law.
Trump has previously pardoned several individuals in the crypto industry, including former CEO of Binance, Changpeng Zhao, and Silk Road founder Ross Ulbricht, which is seen as a pattern that raises expectations for future pardon decisions in this sector.
