President Donald Trump said he is considering granting clemency to Keonne Rodriguez, the CEO of the privacy-focused Bitcoin wallet Samourai. Rodriguez was sentenced last month to five years in prison for money laundering.
This ruling has reignited the debate about privacy technology in cryptocurrencies. Questions are also being raised about whether other convicted developers, such as Roman Storm of Tornado Cash, could also potentially receive presidential clemency.
Calls for more clemency requests face market frustration
During a press briefing on December 15, a reporter asked Trump about the case of Rodriguez. The reporter noted that the case began under the Biden administration but continued under Trump's Department of Justice. Trump replied, 'I have heard about it. I will look into it.' The president indicated that he would review the case, especially after the reporter mentioned that there is significant support for a pardon within the crypto community.
Rodriguez (37) and co-founder William Lonergan Hill (67) were convicted of running a cryptocurrency mixer. According to prosecutors, they facilitated the laundering of over $237 million in criminal proceeds. Rodriguez received five years in prison, Hill four years. Both must pay $250,000 in fines.
The announcement led to various reactions. Some advocates hope that the choice will lead to more crypto-friendly regulations. A user on X even called for clemency to be granted to Do Kwon, the embattled founder of the collapsed Terra/Luna ecosystem.
Critical people point to the broader market performance under Trump's presidency. Since he took office, major cryptocurrencies have significantly declined, with some coins dropping by more than 70%.
Indictment against the 'simple developer' narrative
The U.S. Department of Justice presented evidence that contradicts the image of Rodriguez and Hill as ordinary privacy developers. According to the statement regarding the conviction from November 19, prosecutors showed that the founders actively promoted their services to criminals.
Hill allegedly advertised Samourai on Dread, a darknet forum. There, he responded to someone looking for 'safe ways to clean dirty BTC' and recommended the Whirlpool service. Rodriguez supposedly encouraged Twitter hackers in 2020 to funnel stolen money through the mixer; he was even disappointed when they chose a competitor.
The most damning were WhatsApp messages from Rodriguez in which he described mixing as 'money laundering for bitcoin.' The company also admitted in marketing materials to targeting 'Dark/Grey Market participants' who moved money from 'illegal activities.'
According to prosecutors, the criminal money that went through Samourai came from various sources including drug trafficking, darknet marketplaces, cyberattacks, fraud, sanctioned countries, contract killings, and a child pornography website.
Broad implications
The case also rekindles the debate about the responsibility of developers for users' actions on decentralized platforms. Privacy advocates believe that this lawsuit sets a dangerous precedent for open-source software, while law enforcement agencies maintain that actively promoting criminal use crosses a line.
Online discussions are now also addressing whether Roman Storm, the developer of Tornado Cash who was convicted in August for similar offenses, might also be eligible for clemency. Storm was found guilty of conspiracy for running an illegal money transaction service. The jury did not reach a verdict on the more serious charges of money laundering and violating sanctions.
The U.S. Congress is still debating crypto regulation. Politicians are introducing multiple bills to clarify the legal status of privacy-enhancing technologies, but so far, none have been passed.
Trump had previously granted pardons to various crypto figures, such as former Binance CEO Changpeng Zhao and Silk Road founder Ross Ulbricht. This has led to increasing speculation about future pardon decisions in the sector.
