President Donald Trump stated his readiness to consider the issue of pardoning Kion Rodriguez. The CEO of the privacy-focused bitcoin wallet Samourai Wallet received five years in federal prison last month. The basis for the sentence was charges of money laundering.
This statement has reignited the debate over privacy technologies in the cryptocurrency space. Additionally, questions have arisen about the fate of other convicted developers. In particular, the market is discussing whether Roman Storm from Tornado Cash can expect presidential clemency.
Market reaction and new requests for clemency
During a press briefing on December 15, a journalist asked Trump about the Rodriguez case. The reporter noted that the prosecution began under the Biden administration but continued under the current Department of Justice. Trump replied succinctly: 'I've heard about it. I will look into it.' The president added that he would consider this issue after the journalist mentioned the broad support for the developer within the crypto community.
Rodriguez (37 years old) and co-founder of the project William Lonergan Hill (67 years old) were found guilty of operating a cryptocurrency mixing service. According to the prosecution, the partners facilitated the laundering of over $237 million in criminal proceeds. Rodriguez received five years in prison, while Hill received four years. The court also ordered each to pay a fine of $250,000.
The announcement triggered a mixed reaction. Industry supporters expressed hope that this decision would give momentum to a favorable policy regarding digital assets. One user on social media X even called for the clemency to be extended to Do Kwon, the founder of the collapsed Terra/Luna ecosystem.
However, critics pointed to the overall market dynamics during Trump's presidency. Since he took office, the prices of major cryptocurrencies have demonstrated significant declines. Some tokens have lost more than 70% in value.
The prosecution's position against the version of 'simple developers'
The Department of Justice presented evidence that challenges the image of Rodriguez and Hill as creators of privacy tools. According to the sentencing statement from November 19, prosecutors proved that the founders actively promoted their services among criminal users.
The investigation claims that Hill promoted Samourai on the dark web forum Dread. He directly responded to a user seeking ways to 'clean dirty BTC,' recommending Whirlpool as the best option. Rodriguez reportedly urged Twitter hackers in 2020 to funnel stolen funds through their mixer. He even expressed frustration when hackers chose a competitor.
The greatest damage to the defense's case was inflicted by Rodriguez's personal correspondence on WhatsApp. In it, he described the mixing process as 'money laundering for bitcoin.' At the same time, the company's marketing materials acknowledged the target audience. It referred to participants in 'gray and dark markets' moving proceeds from illegal activities.
Prosecutors stated that funds of criminal origin passed through Samourai. The sources of money included drug trafficking, dark web markets, cyber hacks, fraud, and contract killing schemes. The service was also used to finance a child pornography site.
Legal implications for the industry
The case has once again raised the question of developers' liability for user actions on decentralized platforms. Privacy advocates argue that the indictment creates a dangerous precedent for open-source software development. Law enforcement, on the contrary, believes that active encouragement of criminal use crosses the line of legality.
Online discussions have expanded to the fate of Roman Storm. The developer of Tornado Cash was convicted on similar charges in August. Jurors found him guilty of conspiracy to conduct an unlicensed money transfer business. However, opinions were divided among the jury on the more serious charges of money laundering and sanctions violations.
Congress continues to debate cryptocurrency regulation. Legislators are presenting various bills to clarify the legal status of privacy-enhancing technologies. Nevertheless, none of these documents have yet become law.
Previously, Trump pardoned several well-known figures in the cryptocurrency space. Among them were former Binance CEO Changpeng Zhao and Silk Road founder Ross Ulbricht. This trend fuels speculation about possible future clemency decisions by the president in this sector.
