Business

Guilty Plea Expected From Samourai Wallet Founders

Samourai Wallet's co-founders are set to plead guilty to criminal charges in the United States after initially maintaining their innocence.
Samourai Wallet Trial

Key Takeaways

  • Samourai Wallet co-founders Keonne Rodriguez and William Hill will change their plea to guilty in a federal case.
  • They face charges of money laundering and operating an unlicensed money-transmitting business.
  • The maximum sentence could reach 25 years.
  • Previous attempts to dismiss the case, including citing DOJ memos and suppressed evidence, were unsuccessful.
  • The case is part of a broader U.S. crackdown on crypto privacy tools, paralleling the Tornado Cash trial.

 

Founders Change Plea After Initial Defense

Keonne Rodriguez and William Lonergan Hill, the CEO and CTO of Samourai Wallet respectively, filed separate notices on Tuesday, expressing their intent to change their previous not guilty pleas. A hearing to formalize this change was scheduled in a New York federal court for Wednesday morning.

 

Samourai Wallet

Keonne Rodriguez’s Document Reflecting His Plea Change

Source: CourtListener

 

Back in April 2024, both founders were indicted for allegedly operating an unlicensed money-transmitting business and conspiring to commit money laundering.

According to prosecutors, the Samourai Wallet protocol processed over $2 billion in illegal transactions, with some traced back to dark web platforms such as Silk Road.

 

What Is Samourai Wallet?

Samourai Wallet is a privacy-centric Bitcoin wallet designed to anonymize transactions through advanced features such as CoinJoin, Ricochet, and Whirlpool.

Its primary function has been to obfuscate the trail of funds, making it harder to link transactions to specific individuals or entities.

 

Potential Sentences: Up To 25 Years In Prison

The legal charges against Rodriguez and Hill are severe:

  • Conspiracy to commit money laundering carries a maximum penalty of 20 years.
  • Operating an unlicensed money-transmitting business adds up to 5 more years, bringing the potential sentence to 25 years behind bars.

While the court documents did not clarify how the guilty plea would affect sentencing, it’s expected that the move could lead to reduced penalties through plea agreements.

 

Court Timeline & Trial Delays

Originally, the trial was scheduled for November 3rd, 2025. However, this shift in plea could bring about a significant change in the timeline and outcome of the legal proceedings.

 

Previous Legal Maneuvers Failed

April Motion To Dismiss The Case

In April 2025, attorneys for Rodriguez and Hill sought to dismiss the charges, citing an internal memo from Deputy Attorney General Todd Blanche.

The memo stated that the Department of Justice (DOJ) would not pursue cases involving “unwitting violations” of regulations related to crypto mixers.

 

Allegations Of Withheld Evidence

A month later, their legal team accused federal prosecutors of withholding crucial advisory opinions.

According to the defense, six months before the indictment, legal advisors had stated that Samourai did not require a money transmitter license. Neither motion succeeded in halting the prosecution.

 

The Wider Context: Crypto Privacy On Trial

Samourai Wallet is not alone in facing scrutiny from U.S. authorities. The Tornado Cash case, another high-profile crypto mixer prosecution, is unfolding simultaneously.

 

Roman Storm Trial: A Parallel Case

Roman Storm, co-developer of Tornado Cash, is currently on trial for similar charges: money laundering and sanctions violations. If convicted, he faces up to 45 years in prison.

 

Roman Storm

Source: X (@rstormsf)

 

Privacy advocates argue that these cases threaten the future of open-source privacy tools and could set a dangerous precedent for DeFi innovation.

 

FAQ

What is Samourai Wallet?

Samourai Wallet is a privacy-focused Bitcoin wallet known for mixing and anonymizing transactions using techniques like Whirlpool and CoinJoin.

What are the founders being charged with?

The U.S. government charged them with conspiracy to commit money laundering and operating an unlicensed money-transmitting business.

When is the trial?

The trial was originally set for November 3, 2025, but may now be adjusted due to the plea change.

Why does this case matter?

This case could have a lasting impact on the future of privacy tools in crypto, open-source software rights, and regulatory expectations in the DeFi space.

LawsuitRegulationSamourai WalletTornado Cash

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Haider Jamal

Content Strategist

Haider is a fintech enthusiast and Content Strategist at CryptoWeekly with over four years in the Crypto & Blockchain industry. He began his writing journey with a blog after graduating from Monash University Malaysia. Passionate about storytelling and content creation, he blends creativity with insight. Haider is driven to grow professionally while always seeking the next big idea.

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By submitting this form, you are consenting to receive marketing emails from: Crypto Weekly, 36 Blue Jays Way, Toronto, ON, M5V 3T3, http://cryptoweekly.co. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

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