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17h ago

Samourai Wallet Co-Founders to Plead Guilty in Federal Money Laundering Case

Prosecutors’ rejection of Samourai’s regulatory defenses cleared the way for pleas that could set a precedent in crypto privacy prosecutions

Samourai wallet devs plead guilty to conspiring to run unlicensed money transmitter
Samourai wallet devs expected to plead guilty to money laundering charges
Are Samourai wallet founders going to jail? Execs set to plead guilty in DOJ case
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Overview

  • Court filings in the Southern District of New York show Keonne Rodriguez and William Lonergan Hill will formally plead guilty to conspiracy charges on July 30 after initially pleading not guilty in April 2024.
  • They are accused of operating their bitcoin mixing service as an unlicensed money transmitter and facilitating the laundering of over $100 million in illicit funds.
  • By forgoing a November trial before Judge Denise L. Cote, the founders now face a maximum sentence of 25 years behind bars.
  • Defense filings had cited a DOJ memo and FinCEN’s private view that Samourai Wallet did not require licensing, but the court ruled those opinions did not bar prosecution.
  • Legal experts say the guilty pleas may influence outcomes in parallel cases against privacy-focused mixers, including the ongoing Tornado Cash trial of Roman Storm.