Samourai Wallet Founders Plead Guilty Face 5-Year Sentencing $237M Fine

The co-founders of Samourai Wallet, William Lonergan Hill and Keonne Rodriguez, have entered guilty pleas in a New York federal court, admitting to conspiring to operate an unlicensed money transmission business [1]. The plea agreement results in the dismissal of more severe charges, including money laundering conspiracy, which carried a potential maximum sentence of 20 years [1]. Instead, the founders now face a maximum of five years in prison and a fine of $237 million [1]. Their sentencing is scheduled for November 6, 2025 [1].

The case centers on the use of Samourai Wallet as a privacy-focused cryptocurrency mixer, which prosecutors claim facilitated over $100 million in illicit transactions [1]. The platform, designed to obscure the flow of funds, was shut down by the U.S. Department of Justice (DOJ) and the FBI in 2024 over concerns that it was being used for large-scale money laundering and sanctions evasion [1]. The DOJ has not pursued additional charges related to those activities following the guilty plea.

Legal experts highlight that the plea deal reflects a calculated risk strategy by both the defendants and the prosecution. While the founders are admitting guilt in relation to operating an unlicensed business, the removal of the more serious laundering charges significantly reduces the potential penalties [1]. This outcome is seen as a strategic compromise aimed at streamlining the legal process and securing a resolution without a prolonged trial [1].

The case has sparked broader debate over the legal status of privacy tools in the cryptocurrency space [1]. Amanda Tuminelli, chief legal counsel for the DeFi Education Fund, has criticized the DOJ’s application of Section 1960 of the federal money transmission laws, which she argues unfairly targets noncustodial developers. She maintains that developers should not be classified as money transmitters solely because their tools may be misused [1]. This perspective reflects a larger industry concern about the implications of regulatory enforcement on privacy-focused software development [1].

The Samourai Wallet case aligns with other recent legal actions targeting privacy protocols, including the ongoing trial of Tornado Cash co-founder Roman Storm [1]. These cases highlight a growing regulatory focus on cryptocurrency tools that enhance user anonymity. While enforcement officials argue that such measures are necessary to combat financial crime, privacy advocates warn of the potential risks to legitimate on-chain privacy rights [1].

The crypto community remains divided on the implications of the plea deal. Some view it as a necessary step to hold developers accountable for enabling illicit activity, while others see it as a threat to the development of privacy-enhancing technologies [1]. The outcome of the November 2025 sentencing will likely shape the legal landscape for similar cases and could set a precedent for future enforcement actions involving privacy-focused crypto tools [1].

Source:

[1] [Samourai Wallet Founders Plead Guilty to Unlicensed Money Transmitter Charges Amid Legal Debate](https://en.coinotag.com/samourai-wallet-founders-plead-guilty-to-unlicensed-money-transmitter-charges-amid-legal-debate/)