Lead
A New York court has sentenced Samourai Wallet developer Keonne Rodriguez to five years in prison, the maximum term allowed under the charge. He was convicted for operating an unlicensed money transmitting business, after prosecutors said the privacy-focused Bitcoin wallet was used to launder more than $237 million.
Key Developments
- Sentence: 5 years (maximum under the statute)
- Conviction: Operating an unlicensed money transmitting business
- Alleged illicit flows: $237 million laundered via the wallet
- Co-developer: William Hill to be sentenced on November 7
- Plea agreement in July 2024 removed a more serious money laundering charge
Case Details
Prosecutors argued that Samourai Wallet’s integrated mixing tool, Whirlpool, and other privacy features impeded transaction tracing and were used to facilitate illicit activity. Case materials allege funds moved through the service were linked to drug trafficking, darknet marketplaces, hacking, fraud, contract killings, and child exploitation content.
Rodriguez and co-developer William Hill were arrested in 2024. They initially faced up to 20 years in prison on charges that included money laundering and operating without a license. In July 2024, both entered a plea deal, admitting guilt solely to operating an unlicensed money transmitting business, leading to the dismissal of the more severe money laundering charge. Defense attorneys had asked the court to impose a minimum sentence of one year for Rodriguez, which the court rejected.
Background on Samourai Wallet
Samourai Wallet is a Bitcoin wallet known for its emphasis on user privacy. Its Whirlpool feature implements transaction mixing designed to obscure the origin and destination of funds, a capability that has drawn heightened regulatory scrutiny in the United States and abroad.
What’s Next
Co-developer William Hill is scheduled to be sentenced on November 7. The case underscores the increasing enforcement focus on privacy tools and unlicensed financial services in the crypto ecosystem, with potential implications for how privacy-centric crypto projects operate in regulated markets.