Samourai Wallet Co-Founders Plead Guilty to Unlicensed Money Transmission in U.S. Court

The co-founders of the Bitcoin mixing app Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, have pleaded guilty in a U.S. federal court in New York to charges of operating an unlicensed money transmitting business. Their guilty plea follows years of legal proceedings and comes as a significant development in the government’s ongoing efforts to regulate crypto tools used for financial privacy [1]. The maximum penalty they could face is five years in prison, though the prosecution agreed to drop a more severe money laundering charge that carried a potential 20-year sentence [1].

Rodriguez and Hill, who served as CEO and CTO respectively, were charged in a 2024 indictment that alleged they knowingly allowed their platform to be used for laundering over $100 million in illicit funds. Prosecutors claimed that Samourai Wallet became a haven for criminals engaging in large-scale money laundering and sanctions evasion [1]. The U.S. Department of Justice and the FBI had previously shut down the platform and arrested the defendants, asserting that the founders were aware of the criminal activity their service enabled [1].

The plea deal reflects a calculated risk for both the defendants and the government. By admitting guilt, Rodriguez and Hill avoided the potential of a longer sentence from a trial but still faced the consequences of acknowledging wrongdoing. Amanda Tuminelli, chief legal council for the DeFi Education Fund, commented on the case, arguing that the DOJ’s interpretation of what constitutes a money transmitter is overly broad, particularly in the context of noncustodial software [1]. She emphasized that users should be able to make private transactions on-chain without fear of regulatory overreach.

The case has broader implications for the legal status of crypto mixers. Similar tools like Tornado Cash, which was banned by the U.S. government in 2022, have faced intense scrutiny and prosecution. Roman Storm, a co-founder of Tornado Cash, is currently on trial, with prosecutors seeking up to 45 years in prison if he is convicted [1]. These cases highlight a growing regulatory focus on tools that obscure transaction trails, with the Justice Department increasingly prioritizing enforcement in the crypto space.

The sentencing for Rodriguez and Hill is scheduled for November 6. The outcome will likely shape how future cases involving privacy-focused crypto tools are handled, with advocates and legal experts closely watching for precedents that could impact the development and use of such services. As the U.S. continues to navigate the intersection of cryptocurrency and financial regulation, this case underscores the mounting legal risks for developers who operate outside established compliance frameworks [1].

Source:

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