Samourai Wallet Founders to Plead Guilty in DOJ Case Over $100M in Alleged Illicit Transactions

The co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, are set to plead guilty in a U.S. Department of Justice (DOJ) case accusing them of enabling over $100 million in illicit transactions through their privacy-focused cryptocurrency platform [1]. The plea comes after nearly a year of legal proceedings that began with their arrest in April 2024. The DOJ alleges that the founders designed Samourai as a tool for illicit actors to launder money, using advanced cryptographic techniques to obscure transaction trails and evade sanctions [1]. Prosecutors have emphasized that the platform was marketed as a “safe haven” for mixing crypto transactions, facilitating untraceable financial activity in violation of federal anti-money laundering (AML) laws [1].

Rodriguez and Hill initially denied the charges, arguing that the DOJ’s case lacked legal foundation and that FinCEN had previously determined Samourai did not meet the legal definition of a money transmitter [1]. This revelation raised hopes that the charges might be dropped. However, those hopes have now faded, with both executives agreeing to guilty pleas. The decision marks a strategic move to avoid the unpredictability of a trial while signaling a broader enforcement shift by U.S. regulators targeting privacy-first cryptocurrency projects [1].

The case could also have implications for another high-profile trial involving Tornado Cash co-founder Roman Storm, who faces similar charges in the U.S. [1]. Tornado Cash, like Samourai, is a decentralized mixer designed to enhance user privacy, but it has been accused of enabling the laundering of funds linked to sanctioned entities. The guilty plea by Samourai’s founders may set a precedent that could influence the outcome of the Tornado Cash case, particularly as both projects are accused of enabling illicit activity through their anonymity-focused features [1].

Industry advocates, including Ethereum co-founder Vitalik Buterin, have long defended privacy-based tools like Samourai and Tornado Cash, arguing that developers should not be held criminally liable for how bad actors misuse their technology [1]. The plea has reignited concerns among developers that the outcome could discourage innovation in the cryptocurrency space by creating a chilling effect on privacy-enhancing technologies [1].

Meanwhile, in a separate but related case in China, a former technology executive was recently sentenced to 14 years and six months for laundering $19.5 million through cryptocurrency mixers and exchanges [2]. That case involved the recovery of 90 Bitcoin and demonstrated how law enforcement is increasingly capable of tracing complex crypto-based schemes, even in highly anonymous environments [2]. These global enforcement efforts highlight the intensifying regulatory focus on privacy-centric platforms, with regulators leveraging blockchain analytics to track illicit financial flows [2].

The Samourai Wallet plea hearing is scheduled for July 30, 2025, in the U.S. District Court for the Southern District of New York [1]. The final terms of the plea agreement remain undisclosed, but the potential penalties include significant fines and up to 25 years in prison for each co-founder [1]. The case underscores the challenges faced by developers of privacy-first technologies in navigating the growing regulatory landscape, as regulators seek to balance innovation with the need to prevent financial crime.

Source:

[1] https://crypto.news/are-samourai-wallet-founders-going-to-jail-execs-set-to-plead-guilty-in-doj-case/

[2] https://decrypt.co/332523/beijing-exec-jailed-laundering-19-5m-crypto-mixers-exchanges