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Samourai Wallet Developer Gets Five-Year Maximum in Bitcoin-Mixing Case

The judge said the maximum term was necessary for deterrence after a plea to unlicensed money transmission.

Overview

  • U.S. District Judge Denise Cote sentenced Keonne Rodriguez to 60 months in prison, imposed a $250,000 fine, and ordered three years of supervised release.
  • The court ordered wage garnishment toward the fine, including up to 50% of prison earnings under UNICOR and 25% of gross monthly income after release.
  • Prosecutors said Samourai’s tools helped conceal about $237 million in illicit proceeds and cited messages and an alleged six-page escape plan to argue he encouraged criminal use.
  • Whirlpool and Ricochet processed more than 80,000 BTC since their launches, generating over $6 million in fees by coordinating batch mixes and multi-hop transactions to hinder tracing.
  • Rodriguez and co-defendant William Lonergan Hill pled guilty in July to operating an unlicensed money-transmitting business, the money-laundering count was dropped, and Hill’s sentencing is now set for November 19.