Samourai Wallet Founders Plead Guilty in NY Court Over Crypto Mixing Charges

The co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, are set to plead guilty in a New York federal court to charges related to their development of a cryptocurrency mixing service. The plea comes after repeated failed attempts to dismiss the case and amid heightened legal scrutiny of privacy-centric crypto tools. Rodriguez, the CEO, and Hill, the CTO, face a combined maximum penalty of 25 years in prison for allegedly operating an unlicensed money-transmitting business that facilitated over $2 billion in illicit transactions, including those linked to dark web platforms like Silk Road. The charges include conspiracy to commit money laundering and unlicensed money transmission, with the latter carrying a 20-year and five-year sentence, respectively [1].

The case has drawn attention for its potential implications for the broader crypto industry. The founders initially sought to dismiss the charges, citing a Department of Justice memo suggesting that unwitting violations of regulations on crypto mixers would not be prosecuted. However, the court rejected these arguments, emphasizing that the DOJ maintained its stance on enforcing anti-money laundering laws. The timing of the guilty pleas coincides with a parallel trial involving Roman Storm, a co-creator of the Tornado Cash mixer, who faces up to 45 years in prison if convicted [1].

Samourai Wallet’s function as a crypto mixer—blending user funds to obscure transaction trails—has positioned it at the center of a legal debate over privacy technologies. Advocates warn that convictions in these cases could establish precedents limiting the development and use of open-source privacy tools. The Justice Department’s investigation highlighted the service’s role in laundering funds for criminal activity, including transactions tied to Silk Road, a notorious dark web marketplace. Rodriguez and Hill’s guilty plea follows a 2024 indictment that accused them of actively enabling money laundering through their platform [1].

The broader legal environment for crypto privacy tools remains contentious. Roman Storm’s trial, in particular, has sparked controversy over the evidentiary weight given to a T-shirt he wore at a 2019 crypto event, featuring the phrase “I keep my Ethereum clean with Tornado Cash.” Prosecutors argue the shirt symbolizes Storm’s awareness of Tornado Cash’s role in laundering illicit funds, while his defense team dismisses it as a satirical meme. The outcome of these cases could influence how courts evaluate intent in similar prosecutions [1].

Separately, the Justice Department has continued pursuing high-profile crypto fraud cases, such as Vincent Mazzotta Jr.’s $13 million Ponzi scheme involving fake AI trading bots. While Mazzotta’s case is unrelated to privacy tools, it underscores the agency’s focus on crypto-related financial crimes. Mazzotta admitted to defrauding investors through fictitious government agencies and laundering funds via mixers, further illustrating the intersection of crypto’s anonymity features with illicit activity [1].

The guilty pleas by Samourai’s founders mark a pivotal moment in the U.S. government’s enforcement strategy against crypto tools that challenge regulatory oversight. As courts adjudicate these cases, the legal and financial industry will closely monitor whether convictions will stifle innovation in privacy-enhancing technologies or reinforce existing anti-money laundering frameworks [1].

Source: [1] title: Samourai Wallet Founders to Plead Guilty in NY Court (https://coinmarketcap.com/community/articles/6889e027992943384be55823/)