Samourai Wallet Co-Founders Plead Guilty to Unlicensed Money Transmitting in New York

The co-founders of Samourai Wallet, a privacy-focused Bitcoin wallet, have pleaded guilty to operating an unlicensed money transmitting business in New York, entering into a plea deal with U.S. prosecutors that spares them the risk of more severe charges. Keonne Rodriguez and William “Bill” Lonergan Hill admitted to a single conspiracy charge linked to the wallet’s coin-mixing service, which authorities allege was used to launder over $100 million in criminal proceeds. The plea hearing took place in the Southern District of New York on Wednesday, the same day a jury began deliberations in the Tornado Cash case, where similar allegations are being made against another crypto mixer developer [1].

Under the terms of the plea agreement, the pair now faces a maximum of five years in prison, down from a potential 20-year sentence for the more serious money laundering charge they were initially facing. Sentencing is scheduled for November, and the defendants have agreed to forfeit nearly $238 million in assets, with $6.3 million to be paid before the hearing [2]. Hill, who lives in Portugal, has been ordered to return to New York to continue his house arrest under increased judicial supervision [3].

The case has drawn significant attention from the cryptocurrency community and legal experts, as it raises critical questions about the regulatory treatment of privacy-enhancing tools. Samourai Wallet’s coin-mixing feature was marketed as a way to enhance user privacy by making transactions harder to trace. However, prosecutors argue that the service was predominantly used by individuals engaged in illicit activities to obscure the flow of criminal funds [4].

Rodriguez and Hill had previously sought to have the case dismissed, citing a Justice Department memo suggesting the agency would not pursue criminal charges against crypto firms based solely on regulatory violations or user behavior. Prosecutors, however, decided to proceed, despite internal discussions at the Financial Crimes Enforcement Network (FinCEN) reportedly casting doubt on whether Samourai Wallet met the legal definition of a money transmitter [5].

Legal observers suggest that the plea deal could set a precedent for how similar cases are handled in the future. By securing a lighter sentence and avoiding more severe charges, Rodriguez and Hill appear to have opted for a strategic resolution that reduces their exposure to criminal liability. The outcome may encourage other crypto firms facing regulatory scrutiny to seek similar negotiated resolutions rather than risk prolonged legal battles [6].

The case also underscores the increasing regulatory pressure on unlicensed financial services in the crypto space, particularly those offering strong anonymity features. While privacy advocates defend such tools as essential for financial autonomy, regulators continue to emphasize the risks they pose for enabling financial crime. As the legal landscape continues to evolve, the Samourai Wallet case represents a pivotal development in the ongoing debate over the balance between privacy and regulatory compliance [7].

Source:

[1] title: Samourai Wallet Devs Plead Guilty to Operating Without a

(url: https://crypto-economy.com/samourai-wallet-devs-plead-guilty-to-operating-without-a-license-avoid-laundering-charges/)

[2] title: Samourai Wallet Developers Plead Guilty in Major

(url: https://web.ourcryptotalk.com/blog/samourai-wallet-developers-plead-guilty-in-major-crypto-privacy-case)

[3] title: Samourai Wallet Executives Stare at 5-Year Sentence After

(url: https://www.coinlive.com/news-flash/863771)

[4] title: Samourai Wallet Guilty Plea: The Shocking Unraveling Of

(url: https://bitcoinworld.co.in/samourai-wallet-guilty-plea/)

[5] title: Samourai Wallet Developers Set to Admit Guilt in Money

(url: https://www.vtrader.io/news/samourai-wallet-developers-set-to-admit-guilt-in-money-laundering-case/)

[6] title: Latest Crypto News and Cryptocurrency Prices | Gate.com

(url: https://www.gateinfo.io/news)

[7] title: Samourai Wallet Developers Plead Guilty, Avoid Harsher Charges

(url: https://coinmarketcap.com/community/articles/688b9d80286adf6d7d4812cc/)