Bitcoin News Today: Samourai Wallet Founders Plead Guilty in DOJ $2B Laundering Case

The founders of Bitcoin mixing platform Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, have reversed their initial not guilty pleas and will now plead guilty in a high-profile U.S. Department of Justice (DOJ) case. The plea change, set for a hearing on Wednesday before Judge Denise Cote in the Southern District of New York, marks a significant shift in their legal strategy following charges of operating an unlicensed money-transmitting business and conspiracy to commit money laundering [1]. Prosecutors allege the pair earned $4.5 million in fees from the platform’s mixing services while facilitating over $2 billion in unlawful transactions, including payments linked to the defunct Silk Road marketplace and other criminal activities [1].

The indictment centers on Samourai’s Whirlpool and Ricochet tools, which blend Bitcoin transactions to obscure their origins. Internal communications referenced a focus on the “black/grey circular economy,” aligning with the DOJ’s argument that the platform was designed to enable criminal behavior [1]. Privacy advocates have criticized the case as part of a broader crackdown on tools that anonymize digital transactions. Similar actions against Ethereum-based Tornado Cash and Bitcoin Fog have raised concerns that such prosecutions could deter open-source developers from creating privacy-enhancing technologies [1][4].

The defense had previously sought to dismiss the case by citing a 2025 DOJ memo advising prosecutors to avoid charging crypto mixer operators for “unwitting violations.” They also argued that Samourai’s non-custodial design aligned with 2019 guidance from the Financial Crimes Enforcement Network (FinCEN), which exempted anonymizing software providers from money transmitter rules [1]. However, these arguments failed in court, with the judge rejecting motions for dismissal. A trial had been scheduled for November 3, but the plea change now shifts the focus to sentencing, which could carry up to 20 years for conspiracy to commit money laundering and an additional five years for the unlicensed business charge [1].

The case has drawn comparisons to the Tornado Cash prosecution, where co-founder Roman Storm awaits a verdict. Analysts and developers argue that the legal actions against Samourai and similar platforms risk creating a precedent that could stifle innovation in privacy-centric technologies. As one developer noted, “This sets a terrible precedent for the future safety of open source developers,” underscoring the broader implications for the crypto ecosystem [1][4].

Source: [1] Samourai Wallet Founders Set to Plead Guilty in Crypto Case, [https://cryptonews.com/news/samourai-wallet-founders-plead-guilty-crypto-mixer-case/][2] Bitcoin Mixer Samourai Founders to Plead Guilty in Crypto ..., [https://news.futunn.com/en/post/59792141/bitcoin-mixer-samourai-founders-to-plead-guilty-in-crypto-privacy][4] David Z. Morris (@davidzmorris) / X, [https://x.com/davidzmorris?lang=en]