Lead
A U.S. court has sentenced William Lonergan Hill, the 67-year-old co-founder and technical lead of Samourai Wallet, to four years in prison for conspiring to operate an unlicensed money transmitting business. Prosecutors said the Bitcoin wallet’s built-in mixer, Whirlpool, was used to launder more than $237 million in criminal proceeds. Earlier in November, co-founder Keonne Rodriguez received a five-year sentence in the same case.
Key Developments
- Sentence: William Hill received 4 years in federal prison.
- Charges: Conspiracy to operate an unlicensed money transmitting business.
- Alleged laundering: More than $237 million routed through Samourai’s
Whirlpoolmixer. - Co-defendant: Keonne Rodriguez was sentenced to 5 years in early November.
- Mitigating factor: The court considered Hill’s age (67) during sentencing.
Legal Background
Samourai Wallet marketed privacy-enhancing features, including the integrated Whirlpool mixer and other tools designed to obfuscate transaction trails on the Bitcoin network. Prosecutors argued these features were used to conceal illicit funds.
Both Hill and Rodriguez were arrested in 2024. They initially faced charges that included money laundering and operating an unlicensed money transmitting business, with potential sentences of up to 20 years. In July, both defendants pleaded guilty to the lesser count of operating an unlicensed money transmitting business; the more serious money laundering charge was dropped as part of the plea.
Hill’s defense argued he was motivated by ideals of blockchain privacy and a belief in guarding against excessive government intrusion, but the court found the operation unlawful regardless of intent.
Market and Industry Context
The case highlights intensifying U.S. enforcement against crypto mixing services and privacy tools viewed as facilitating the movement of illicit funds. While privacy remains a core ethos for many in the Bitcoin community, operating tools that function as money transmission services without proper licensing has drawn sustained regulatory scrutiny.
What’s Next
With both founders sentenced, the case underscores the legal risks facing privacy-focused crypto services that intersect with financial regulation. Developers and operators in the sector may face increased pressure to implement compliance controls and obtain appropriate licenses where required.