President Donald Trump said he would consider pardoning Keonne Rodriguez, the CEO of the privacy-focused Bitcoin wallet Samourai, who last month was sentenced to five years in federal prison for money laundering charges.
The statement revived the debate about privacy technology for cryptocurrencies. It also raised questions about whether other convicted developers, including Tornado Cash's Roman Storm, could receive similar presidential pardons.
Calls for more pardons face frustration in the market
During a press briefing on December 15, a journalist asked Trump about the Rodriguez case, pointing out that it began under the Biden administration but continued under his own Department of Justice. Trump replied, 'I have heard about it. I will look into it.' The president added that he would consider the case after the journalist mentioned widespread support for a pardon in the crypto community.
Rodriguez, 37, and co-founder William Lonergan Hill, 67, were convicted of operating a cryptocurrency mixing service. The prosecution claims that the two facilitated the laundering of over $237 million in criminal proceeds. Rodriguez received five years, while Hill received four years, and both were ordered to pay fines of $250,000.
The announcement led to mixed reactions. Some supporters expressed hope that the decision would give momentum to crypto-friendly policies. One X user even suggested expanding the pardon to Do Kwon, the beleaguered founder of the collapsed Terra/Luna ecosystem.
Critics pointed out the broader market developments during Trump's presidency. Since he took office, there have been significant declines among major cryptocurrencies, with some tokens falling by more than 70%.
The prosecution's case against the 'Simple Developer' narrative
The Department of Justice presented evidence that challenges the portrayal of Rodriguez and Hill as merely developers of privacy tools. According to the announcement of the ruling on November 19, the prosecution showed that the founders actively marketed their services to criminal users.
Hill reportedly marketed Samourai on Dread, a darknet forum, where he directly responded to a user seeking 'secure methods to clean dirty BTC' by recommending Whirlpool as a superior alternative. Rodriguez allegedly encouraged Twitter hackers in 2020 to send stolen funds through this mixing service. He even expressed disappointment when they chose a competitor.
The most incriminating was Rodriguez's own description of mixing as 'money laundering for bitcoin' in WhatsApp messages. At the same time, the company's marketing materials acknowledged that they aimed to reach 'Dark/Grey Market participants' moving funds from 'illegal activities.'
The prosecution states that criminal proceeds processed through Samourai originated from drug trafficking, darknet marketplaces, data breaches, fraud, sanctioned jurisdictions, murder-for-hire, and a child pornography website.
Greater consequences
The case has revived the debate about developer liability for user actions on decentralized platforms. Privacy advocates argue that the prosecution sets a dangerous precedent for the development of open-source software, while law enforcement believes that active encouragement of criminal use crosses the line of legality.
Online discussions have expanded to include questions about whether Roman Storm, the Tornado Cash developer convicted of similar charges in August, could also be considered for a pardon. Storm was found guilty of conspiracy to operate an unauthorized money transmission service. The jury could not reach a consensus on the more serious charges of money laundering and violations of sanctions.
Congress continues the debate on cryptocurrency regulation. Politicians are proposing several bills to clarify the legal status of technologies that enhance privacy, but none have been enacted.
Trump has previously pardoned several cryptocurrency figures, including former Binance CEO Changpeng Zhao and Silk Road founder Ross Ulbricht, establishing a pattern that fuels speculation about future pardons in the industry.
