Samourai Wallet Founders Plead Guilty to Unlicensed Money Transmitter Charges

The founders of Samourai Wallet, William Lonergan Hill and Keonne Rodriguez, have pleaded guilty to conspiracy to operate an unlicensed money transmitter, a charge that carries a maximum sentence of five years in prison. This plea came after the U.S. Department of Justice (DOJ) dropped a more severe money laundering charge that could have carried a 20-year sentence [1]. The Samourai Wallet platform, a privacy-focused cryptocurrency mixer, was designed to obscure the movement of digital assets, a feature that raised significant legal scrutiny over its potential misuse in illicit activities [1].

Prosecutors allege that the platform facilitated over $100 million in illicit fund transfers, leading the DOJ and FBI to shut it down in 2024. The enforcement actions highlighted concerns that the wallet was knowingly exploited by criminals for large-scale money laundering and sanctions evasion [1]. The platform’s functionality, which prioritized user anonymity, became a focal point in the broader debate over the legal status of privacy tools in the cryptocurrency space.

Amanda Tuminelli, chief legal counsel for the nonprofit DeFi Education Fund, criticized the DOJ’s interpretation of money transmission laws, particularly Section 1960, arguing that it unfairly targets noncustodial software developers. She emphasized that developers should not be classified as money transmitters merely because their tools can be misused [1]. This criticism reflects a larger discussion about whether privacy tool developers should be held legally responsible for the actions of third-party users.

The case aligns with other high-profile prosecutions, such as the ongoing trial of Tornado Cash co-founder Roman Storm, and signals a growing regulatory focus on privacy protocols. While authorities argue that such enforcement is necessary to prevent criminal activity, privacy advocates warn that it risks undermining legitimate privacy needs for on-chain transactions [1].

Hill and Rodriguez are scheduled for sentencing on November 6, 2025, a date that will determine the legal consequences for their involvement in the unlicensed money transmission. Legal experts note that plea deals often reflect strategic risk calculations, balancing the interests of both defendants and prosecutors [1]. The outcome of this case could set a precedent for how courts treat similar cases involving privacy-focused cryptocurrency applications.

The broader crypto community remains divided. Some view the guilty plea as a setback for privacy rights, while others see it as a necessary enforcement action against financial crime. The case also underscores the urgent need for clearer legal definitions regarding money transmission in decentralized finance [1].

The guilty plea represents a significant moment in the ongoing tension between privacy and regulation in the cryptocurrency ecosystem. As enforcement actions intensify, developers and users must navigate an increasingly complex legal landscape. The November 2025 sentencing will be closely watched as a benchmark for future privacy protocol enforcement and compliance standards [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/)