Samourai Wallet Co-Founders to Plead Guilty in Mixing Case

Samourai Wallet Co-Founders to Plead Guilty to Federal Charges Amid Intensifying Legal Scrutiny of Crypto Mixers

  • Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill intend to plead guilty to federal charges related to operating a crypto mixing service.
  • The plea change follows earlier not guilty pleas entered in April 2024.
  • Rodriguez and Hill face up to 25 years in prison if convicted on all counts, including money laundering conspiracy and operating an unlicensed money-transmitting business.
  • Efforts by the defendants to have the case dismissed were unsuccessful.
  • The guilty pleas come as legal scrutiny of crypto mixers intensifies, including the ongoing trial of Tornado Cash creator Roman Storm.

Keonne Rodriguez and William Lonergan Hill, the co-founders of crypto privacy service Samourai Wallet, have signaled their intention to plead guilty to charges in a New York federal court. Both men were previously charged with running a platform that prosecutors allege processed over $2 billion in illegal transactions, some of which were reportedly linked to illicit online marketplaces.

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Court filings were submitted separately for Rodriguez and Hill on Tuesday, according to records made public by the court. The filings stated that both would change their pleas during a hearing scheduled for Wednesday morning. The trial had been scheduled to begin on November 3.

The charges include conspiracy to commit money laundering, which carries a maximum sentence of 20 years, and operating an unlicensed money-transmitting business, which adds up to five more years. This means Rodriguez and Hill could face a combined maximum of 25 years in prison if convicted. A copy of the change-in-plea document for Rodriguez can be viewed on CourtListener.

Earlier this year, the pair tried to dismiss the charges. They cited an April 7 Department of Justice memo stating that authorities would not prosecute certain crypto mixing cases involving “unwitting violations of regulations.” However, these efforts failed, and the case proceeded.

Crypto mixers like Samourai Wallet combine funds from many users to make tracking transactions more difficult. Prosecutors alleged that Samourai was used to launder money, including from sites like Silk Road.

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The case takes place as legal battles over other crypto mixers continue. One such case is the trial of Tornado Cash creator Roman Storm, who is charged with money laundering and sanctions violations. Storm’s trial has drawn attention over its potential impact on open-source privacy tools and the broader decentralized finance sector. Supporters argue his conviction could set a precedent for criminalizing privacy-focused technologies. Storm faces a maximum of 45 years in prison if convicted on all counts.

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