U.S. prosecutors are reportedly seeking the full five-year prison term for Keonne Rodriguez and William Hill, founders of Samourai Wallet, alleging they knowingly ran a cryptocurrency mixing service that facilitated the laundering of hundreds of millions in illicit funds.
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Key points:
- U.S. prosecutors are seeking the maximum five-year prison sentence for Samourai Wallet founders Keonne Rodriguez and William Hill for knowingly operating a crypto mixing service used to launder illicit funds.
- Authorities allege the platform facilitated at least $237 million in criminal proceeds from 2015 to 2024 and was promoted as a privacy tool while primarily serving illegal activities.
- Rodriguez and Hill pleaded guilty to conspiracy to operate an unlicensed money-transmitting business, avoiding more severe charges, as the case underscores increased regulatory scrutiny of crypto platforms and privacy-focused services.
A sentencing memo filed in the Southern District of New York states that prosecutors allege Rodriguez and Hill actively solicited and encouraged criminals to use Samourai Wallet to conceal illicit funds. The memo claims the platform, promoted as a privacy tool, primarily served to launder proceeds from drug trafficking, hacking, and other criminal activities.
Authorities estimate that Samourai Wallet was used to launder at least $237 million in illicit funds from 2015 until its shutdown in 2024. In July, Rodriguez and Hill pleaded guilty to conspiracy to operate an unlicensed money transmitting business, acknowledging they knew the platform was being used for illegal activity. In return, prosecutors dropped three more severe charges, including money laundering and sanctions violations, each carrying potential sentences of up to 20 years.
In 2024, the founders of Samourai Wallet initially pleaded not guilty to charges of operating an unlicensed money-transmitting business. Prosecutors contend that the crypto mixing platform handled millions in illicit transactions, including funds connected to darknet marketplaces like Silk Road.
The Samourai Wallet case spotlights the growing scrutiny surrounding cryptocurrency platforms and their potential misuse for illicit activities. As digital currencies become increasingly mainstream, regulators and law enforcement agencies are intensifying efforts to hold operators accountable for facilitating money laundering and other financial crimes.
The prosecution of Rodriguez and Hill sends a clear message to the crypto industry: providing tools for anonymity does not exempt platforms from legal responsibility, especially when those tools are knowingly used to conceal criminal activity.
As courts weigh the evidence and determine sentencing, the outcome may influence how crypto developers structure privacy-focused services in the future, balancing user anonymity with legal obligations and regulatory oversight. The industry now faces a pivotal moment in defining the limits of lawful innovation.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
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