Justice Dept. Raises Prosecution Bar for Crypto Mixers Amid Enforcement Shift

A co-founder of a cryptocurrency mixer service was sentenced to four years in prison on Wednesday for his role in laundering over $200 million in illicit funds from dark web transactions. William Lonergan Hill, who co-founded Samourai Wallet, pleaded guilty in July as part of a plea deal with federal prosecutors. His co-founder, Keonne Rodriguez, received a five-year sentence earlier this month in the same case.

The case marks one of the few high-profile cryptocurrency prosecutions under the Trump administration and highlights the growing legal scrutiny of crypto services used to facilitate financial crime. Hill and Rodriguez agreed to forfeit $237 million and pay a $400,000 fine as part of their plea deal. Assistant U.S. Attorney Nicolas Roos emphasized that the sentence sends a clear message that laundering criminal proceeds—whether in fiat or cryptocurrency—carries serious consequences according to Bloomberg.

The sentencing comes as the Justice Department has recently raised the bar for prosecuting crypto mixers and service providers for the actions of their users according to Bloomberg. This shift reflects a broader regulatory environment where enforcement is becoming more nuanced, particularly as new administration priorities begin to take shape according to CryptoSlate.

A Regulatory Shift in Crypto Enforcement

The U.S. Securities and Exchange Commission (SEC) has signaled a significant shift in its approach to cryptocurrency regulation, removing all references to crypto from its 2026 examination priorities according to CryptoSlate. For the first time since 2024, crypto will not be treated as a standalone risk area. Instead, the SEC is integrating crypto-related risks into broader categories such as cybersecurity, anti-money laundering, and emerging financial technologies like AI according to CryptoSlate.

This move aligns with a broader regulatory pivot toward lighter oversight of the crypto market under SEC Chair Paul S. Atkins, who was sworn in in April 2025 according to CryptoSlate. Enforcement actions against crypto companies also appear to be slowing down, with the dismissal of the SEC's civil case against Coinbase marking one of the first such dismissals in recent years according to PR Newswire. Enforcement activity in FY 2025 also saw a 30% drop in actions against public companies and subsidiaries, suggesting a more measured approach by the agency according to PR Newswire.

Implications for the Market and Enforcement

The legal and regulatory landscape for crypto services is evolving rapidly. The Samourai Wallet case, combined with the SEC's new priorities, shows a more targeted and less aggressive posture toward crypto enforcement according to Bloomberg according to CryptoSlate. The Justice Department's recent guidance to raise the bar for prosecuting crypto mixers may also reduce the number of high-profile criminal cases against service providers in the future according to Bloomberg.

Meanwhile, enforcement efforts are focusing more on the actual actors—users who engage in money laundering—rather than the platforms themselves. This strategy is part of a broader effort to shift responsibility and encourage accountability among individuals rather than organizations according to Bloomberg. For companies like American Bitcoin Corp., which reported strong adjusted EBITDA in its Q3 2025 results, the shift in enforcement could lead to a more stable regulatory environment according to PR Newswire. However, companies like KT Corporation in South Korea are still navigating significant short-term risks, including regulatory fines and operational challenges related to unauthorized payments and network issues according to Seeking Alpha.

As the regulatory environment continues to evolve, both investors and operators in the crypto space will need to stay closely attuned to the shifting priorities and enforcement trends. The focus on fraud, AML, and operational risk appears to be replacing the earlier emphasis on crypto-specific rules. For now, the spotlight has moved away from the industry and onto the individuals and practices at the center of financial crime.