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US prosecutors are pushing for a maximum sentence of five years in prison for the founders of Samourai Wallet, accusing them of knowingly operating a crypto-mixing service that helped criminals launder hundreds of millions of dollars in illegal funds.
Key tips:
- US prosecutors are seeking a maximum sentence of five years in prison for the founders of Samourai Wallet.
- Keonne Rodriguez and William Hill pleaded guilty to operating an unlicensed money transmission business.
- The case highlights the US government’s crackdown on cryptographic privacy tools and open-source developers.
In a sentencing notice filed Friday in the Southern District of New York, prosecutors said co-founders Keonne Rodriguez and William Lonergan Hill “repeatedly solicited, encouraged and invited criminals” to use Samourai Wallet to hide illicit proceeds.
Authorities say the platform was marketed as a tool for anonymity, but functioned primarily as a laundering mechanism for proceeds from drug trafficking, hacking and other criminal enterprises.
US Targets $237 Million Laundry Case in Crackdown on Crypto Privacy Tools
The government estimates that at least $237 million in criminal proceeds were channeled through Samourai between 2015 and its closure in April 2024.
The case marks one of the most aggressive actions even against crypto developers accused of authorizing financial crimes through privacy technologies.
Rodriguez and Hill pleaded guilty in July to conspiracy to operate an unlicensed money transmission business, admitting they knew their platform was being used for illegal activity.
In exchange for the indictment, prosecutors dropped three more serious charges, including money laundering and sanctions violations, each of which carried potential sentences of up to 20 years.
Rodriguez’s sentencing is set for Nov. 6, followed by Hill’s on Nov. 7.
While the probation office recommended a 42-month sentence for each, prosecutors are asking for the full five years, the statutory maximum under 18 USC § 371.
The crackdown reflects the US government’s broader campaign against crypto mixers and privacy tools.
In a similar case, the developer Tornado Cash Roman Storm he was convicted earlier this year for operating an unlicensed money transmitter.
Prosecutors said more than $7 billion in tainted funds went through Tornado Cash, including from North Korea’s Lazarus Group.
Although some of these sanctions have been overturned, both cases have sparked debate about the criminalization of privacy-preserving technologies.
Privacy advocates argue that prosecuting open-source developers for how they use their tools sets a dangerous precedent for financial privacy and innovation in the crypto space.
Samourai Wallet’s Lawyers Accuse US Prosecutors of Hiding Evidence
In May, the lawyers of the founders of Samourai Wallet Keonne Rodriguez and William Hill accused US prosecutors of withholding evidence that might have exonerated the cryptic mixer.
In a May 5 letter to a Manhattan federal court, the defense revealed that officials from the US Treasury’s Financial Crimes Enforcement Network (FinCEN) had told prosecutors months before the charges were filed that Samourai did not need a money transmitter license.
Despite this, prosecutors pursued charges that say the duo ran an unlicensed money transmission business.
The defense argues that prosecutors did not disclose FinCEN’s guidance for nearly a year, revealing it only on April 1, 2025, in violation of legal obligations.
FinCEN officials concluded that Samourai, being a non-custodial wallet that never controlled user funds or private keys, did not qualify as a money services business.
However, prosecutors pursued the charges, arguing that the platform exercised “functional control” over the assets, an argument that FinCEN had never officially supported.
