Samourai Wallet Founder Convicted of Cryptocurrency Fraud

Background of the fraud lawsuit

A privacy-first Bitcoin wallet, Samojai Wallet has attracted the attention of the crypto community for its transaction mixing feature, which anonymizes payments on the blockchain. The platform has been developed by founders Keonne Rodriguez (CEO) and William Lonergan Hill (CTO) since 2015. But in April 1924, both were arrested by the US Department of Justice for conspiracy to launder money and operating an unlicensed money transmitting business.

The U.S. government is increasingly cracking down on cryptocurrency security tools, especially coin mixing services that are allegedly involved in illegal activities. This is when the case comes to a head. A major turning point in the case came on July 31, 2025, when new reports said Rodriguez and Hill were expected to plead guilty.

Progress of the verdict

The case began when court documents filed in the Southern District of New York on July 29, 2025, revealed that Rodriguez and Hill would change their pleas from not guilty to guilty at a trial scheduled for the morning of July 30, 2025, presided over by Judge Denise Cote. The move comes after months of litigation, including their unsuccessful attempts to dismiss the case, based on an internal DOJ memo from 2025 that argued that coin mixer developers should not be prosecuted for inadvertent violations. Samourai’s lawyers also accused prosecutors of hiding legal guidance that the platform did not need a money transmitter license, an argument that was rejected by the court.

The lead-up to the guilty plea reflects mounting legal pressure, with prosecutors alleging that Samourai handled more than $2 billion in illegal transactions, including more than $100 million related to dark web marketplaces like Silk Road. The platform was shut down and the website seized following the arrest in April 2024. The guilty plea is seen as a deal to reduce the penalty, with the aggravated money laundering charge (up to 20 years in prison) likely to be replaced with the charge of operating an unlicensed business (up to five years), although the final sentence remains unclear.

Conclude

The expected guilty pleas by the founders of Samourai Wallet in a federal case are a milestone that reflects the intersection of privacy and compliance in the cryptocurrency industry. The event represents a victory for the DOJ in its crackdown on coin mixers, but also raises questions about the impact on technological innovation and personal liberties. While Rodriguez and Hill face an uncertain future, the industry could be facing a period of major change where developers must balance innovation and liability. This is a turning point that sets the stage for new debates and regulations in the future of cryptocurrency in the United States.

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