The co-founders of privacy-centric crypto wallet service Samourai Wallet have pleaded guilty and now face up to five years in prison for running an unlicensed money-transmitting business that allegedly laundered at least $237 million in illicit crypto proceeds.
Key Takeaways:
- Founders Keonne Rodriguez and William Lonergan Hill marketed Samourai Wallet’s mixing tools to criminals on the dark web.
- The service reportedly processed more than 80,000 BTC (~$237 million) from illicit sources between 2015–2024.
- Sentencing is set for November 6–7, with prosecutors seeking up to five years in prison.
Samourai Wallet, launched as a privacy-focused crypto wallet, offered users anonymity through advanced features such as Whirlpool, which allows users to mix Bitcoin transactions, and Ricochet, which adds extra hops to make tracing more difficult. As per U.S. prosecutors in the Southern District of New York, co-founders Keonne Rodriguez (CEO) and William Lonergan Hill (CTO) knowingly operated the service in a way that facilitated laundering of criminal proceeds, including funds from stolen cryptocurrency, drug trafficking, and fraud schemes.
In July 2025, both founders entered guilty pleas to conspiracy to operate an unlicensed money-transmitting business, admitting that the company helped criminals “wash” Bitcoin. While other more severe charges, including money laundering under separate statutes, were dropped as part of the plea agreement, the remaining offense carries a maximum sentence of five years in prison.
Marketing to Dark Web Users
Court documents indicate that the founders actively promoted the wallet’s mixing tools to darknet-market users seeking ways to obscure illicit funds. Communications included one exchange in which Hill advised a user searching for “secure methods to clean dirty BTC” to use Samourai Whirlpool. Prosecutors argue these interactions demonstrate that the founders were not merely providing privacy tools as they intentionally facilitated the laundering criminal funds.
The indictment points out that Samourai Wallet processed over 80,000 BTC between 2015 and 2024, which, at present, equates to roughly $237 million. The founders allegedly collected approximately 246 BTC (~$269 million at the time) in service fees.
Bitcoin Dips Amid Rising Scrutiny of Privacy Tools
As of this writing (11:45AM UTC), Bitcoin (BTC) is trading at approximately $104,535, reflecting a 2.9% drop over the past 24 hours and 8.6% over the past 7 days, according to CoinGecko.
Although the market decline cannot be solely attributed to the Samourai Wallet case, increased regulatory attention to privacy wallets tends to create caution among investors, particularly those holding large crypto portfolios.
Looking Ahead
Sentencing on November 6-7 will be closely watched as a potential benchmark for regulatory treatment of privacy-focused crypto wallets. While the statutory maximum of five years is relatively modest, the symbolic impact is significant. The case may influence how developers design privacy tools, mixers, and self-custody solutions, signaling that knowingly enabling illicit activity can carry legal consequences. For investors, it underscores that privacy tools are no longer risk-free and that regulatory scrutiny may influence market sentiment and volatility in the broader cryptocurrency ecosystem.
Summary
Samourai Wallet’s co-founders pleaded guilty to operating an unlicensed money-transmitting business accused of laundering roughly $237 million in Bitcoin; sentencing on Nov 6–7 could shape future regulatory treatment of privacy wallets.
