US prosecutors are pushing for the maximum five-year prison sentence 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 Takeaways:
- US prosecutors are seeking the maximum five-year prison term for Samourai Wallet founders.
- Keonne Rodriguez and William Hill pleaded guilty to operating an unlicensed money-transmitting business.
- The case highlights the US government’s widening crackdown on crypto privacy tools and open-source developers.
In a sentencing memo 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 claim 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 $237M Laundering Case in Crackdown on Crypto Privacy Tools
The government estimates that at least $237 million in criminal proceeds were funneled through Samourai between 2015 and its shutdown in April 2024.
The case marks one of the most aggressive actions yet against crypto developers accused of enabling financial crimes through privacy technologies.
Rodriguez and Hill pleaded guilty in July to conspiracy to operate an unlicensed money transmitting business, admitting they were aware their platform was being used for illegal activity.
In exchange for the plea, prosecutors dropped three heavier charges, including money laundering and sanctions violations, each of which carried potential sentences of up to 20 years.
Rodriguez’s sentencing is set for November 6, followed by Hill’s on November 7.
While the probation office recommended a 42-month sentence for each, prosecutors are asking for the full five-year term, the statutory maximum under 18 U.S.C. § 371.
The crackdown mirrors the US government’s broader campaign against crypto mixers and privacy tools.
In a similar case, Tornado Cash developer Roman Storm was convicted earlier this year for operating an unlicensed money transmitter.
Prosecutors alleged that over $7 billion in tainted funds flowed through Tornado Cash, including from North Korea’s Lazarus Group.
Despite portions of those sanctions being overturned, both cases have sparked debate over the criminalization of privacy-preserving technologies.
Privacy advocates argue that prosecuting open-source developers for how their tools are used sets a dangerous precedent for financial privacy and innovation in the crypto space.
Samourai Wallet Lawyers Accuse US Prosecutors of Hiding Evidence
In May, lawyers for Samourai Wallet founders Keonne Rodriguez and William Hill accused US prosecutors of withholding evidence that could have exonerated the crypto 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 require a money transmitter license.
Despite this, prosecutors went ahead with charges alleging that the duo ran an unlicensed money transmission business.
The defense claims that prosecutors failed to disclose FinCEN’s guidance for nearly a year, only revealing it on April 1, 2025, in violation of legal obligations.
FinCEN officials reportedly concluded that Samourai, being a non-custodial wallet that never controlled users’ funds or private keys, did not qualify as a money services business.
Nonetheless, prosecutors pursued charges, arguing that the platform exercised “functional control” over assets, an argument FinCEN had never officially endorsed.
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