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US prosecutors are advocating for the maximum five-year prison sentence for the creators of Samourai Wallet, alleging that they knowingly operated a cryptocurrency mixing service that facilitated the laundering of hundreds of millions of dollars in illicit funds.
Key Takeaways:
- US prosecutors are pursuing the maximum five-year prison sentence for the founders of Samourai Wallet.
- Keonne Rodriguez and William Hill have pleaded guilty to running an unlicensed money-transmitting operation.
- This case underscores the US government’s expanding crackdown on cryptocurrency privacy tools and open-source developers.
In a sentencing memorandum submitted on Friday in the Southern District of New York, prosecutors stated that co-founders Keonne Rodriguez and William Lonergan Hill “repeatedly solicited, encouraged, and invited criminals” to utilize Samourai Wallet to conceal illegal proceeds.
Authorities assert that the platform was promoted as a means for anonymity but primarily served as a laundering tool for funds derived from drug trafficking, hacking, and other criminal activities.
US Targets $237M Laundering Case in Crackdown on Crypto Privacy Tools
The government estimates that at least $237 million in criminal proceeds were channeled through Samourai from 2015 until its closure in April 2024.
This case represents one of the most forceful actions taken against cryptocurrency developers accused of facilitating financial crimes through privacy technologies.
Rodriguez and Hill entered guilty pleas in July for conspiracy to operate an unlicensed money transmitting business, acknowledging their awareness that their platform was being utilized for illegal purposes.
In return for their plea, prosecutors dismissed three more serious charges, including money laundering and sanctions violations, each of which carried potential sentences of up to 20 years.
Rodriguez’s sentencing is scheduled for November 6, with Hill’s following on November 7.
While the probation office has recommended a 42-month sentence for each, prosecutors are requesting the full five-year term, the statutory maximum under 18 U.S.C. § 371.
JUST IN:
U.S. government seeks maximum 5-year sentence for Samourai Wallet developers
This isn’t right. Code is speech.
Chilling precedent for open-source devs pic.twitter.com/eN0am3fVnX— Bitcoin Archive (@BTC_Archive) November 3, 2025
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The crackdown reflects the US government’s broader initiative against cryptocurrency mixers and privacy tools.
In a related case, Tornado Cash developer Roman Storm was convicted earlier this year for operating an unlicensed money transmitter.
Prosecutors claimed that over $7 billion in tainted funds passed through Tornado Cash, including funds linked to North Korea’s Lazarus Group.
Despite some of those sanctions being overturned, both cases have ignited discussions regarding the criminalization of privacy-preserving technologies.
Privacy advocates contend that prosecuting open-source developers based on the usage of their tools establishes a perilous precedent for financial privacy and innovation within the cryptocurrency sector.
Samourai Wallet Lawyers Accuse US Prosecutors of Hiding Evidence
In May, attorneys representing Samourai Wallet founders Keonne Rodriguez and William Hill accused US prosecutors of concealing evidence that could have cleared the crypto mixer.
In a letter dated May 5 to a Manhattan federal court, the defense disclosed that officials from the US Treasury’s Financial Crimes Enforcement Network (FinCEN) had informed prosecutors months prior to the charges being filed that Samourai did not need a money transmitter license.
Regardless, prosecutors proceeded with charges claiming that the duo operated an unlicensed money transmission business.
The defense asserts that prosecutors failed to reveal FinCEN’s guidance for nearly a year, only disclosing it on April 1, 2025, in violation of legal requirements.
FinCEN officials reportedly determined that Samourai, as a non-custodial wallet that never managed users’ funds or private keys, did not qualify as a money services business.
Nevertheless, prosecutors pursued charges, contending that the platform exercised “functional control” over assets, a position that FinCEN had never officially supported.
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