Samourai Wallet Founders Accused of Deliberate Money Laundering

Prosecutors seek a five-year prison sentence.

Co-founders of the cryptocurrency wallet Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, “repeatedly incited, encouraged, and urged criminals” to use their platform to conceal illicit funds, according to U.S. prosecutors in a sentencing memorandum.

Authorities claim the accused intentionally created and promoted a crypto mixer within criminal circles for personal gain.

The probation service recommended 42 months of imprisonment for each defendant, but the prosecution is seeking the maximum possible five-year term.

The sentencing hearing is scheduled for November 6.

The government document references a 2018 WhatsApp conversation in which Rodriguez referred to cryptocurrency mixing as “money laundering.” In 2020 and 2023, Hill allegedly promoted Samourai on darknet forums, claiming the project would “clean dirty bitcoins” and make them “untraceable.”

Prosecutors estimate the defendants received over $6.3 million in transaction fees through the wallet. The funds were received in bitcoin, so the amount may be higher today due to the currency’s appreciation.

In July, Samourai Wallet developers pleaded guilty to conspiracy to conduct unlicensed money transmission using illicit funds.

In exchange, prosecutors dropped three other serious charges: conspiracy to launder money, conspiracy to violate sanctions, and federal licensing violations.

In August, in a similar case, Tornado Cash mixer developer Roman Storm was found partially guilty.