Samourai Wallet Founders Risks 5-Year in Prison in Crypto Laundering Case

U.S. prosecutors are calling for firm punishment against Keonne Rodriguez and William Lonergan Hill, Samourai Wallet founders. Prosecutors argued that the accused used their platform to help criminals shelter illegal and stolen funds. 

The sentencing request marks another major step in the government’s ongoing effort to clamp down on crypto platforms linked to money laundering.

Samourai Wallet Founders Accused of $237M Laundering Scheme

According to a sentencing memorandum filed on October 31, authorities said the two ran a large-scale money laundering service from 2015 to April 2024. During this period, Rodriguez served as CEO, while Hill worked as CTO of Samourai Wallet. 

The filing claimed the operation processed over $237 million in illegal funds, which originated from various criminal activities. This includes drug trafficking, darknet marketplaces, cyber intrusions, fraud, and websites hosting illegal content involving minors. 

Prosecutors noted that Hill admitted in his sentencing letter to encouraging computer hackers and other criminals to move their crime proceeds through the platform.

Samourai Wallet Founders Set for Prison Sentencing

Rodriguez and Hill were arrested in April, 2025, a year later, a grand jury issued an updated indictment against both founders. It accused them of conspiring to commit money laundering and operate an unlicensed money-transmitting business.

By July 30, Rodriguez and Hill pleaded guilty to the second charge under separate plea agreements. The prosecutors calculated an offense level that typically corresponds to 14–17 years in prison. However, under federal law, the maximum sentence allowed for their conviction is five years.

The Probation Office suggested a lighter sentence of 42 months each, while the defendants sought even less time. Rodriguez requested one year and one day, and Hill asked for time served, meaning he hoped to avoid any additional prison time. Rodriguez is scheduled to be sentenced on November 6, and Hill on November 7. 

Wider Crackdown on Crypto Mixers

The Samourai case is part of a broader U.S. effort to rein in crypto services that promise anonymity. It follows a similar high-profile prosecution involving Tornado Cash, an Ethereum-based mixer. Its co-founder, Roman Storm, was convicted in August of operating an unlicensed money transmission business.

The jury, however, did not reach a verdict on Storm’s money laundering and sanctions charges, leaving parts of his case unresolved. Storm remains free on bail while his lawyers push for a post-trial acquittal. If unsuccessful, he could also face up to five years in prison.

The crackdown has sparked sharp criticism from the crypto community. Industry advocates, including the Ethereum Foundation and the Solana Policy Institute, have contributed to Storm’s legal defense. They argue that privacy-preserving tools are not inherently criminal.

Supporters claimed that targeting developers for how others use their software sets a dangerous precedent. Regulators, on the other hand, insist that unchecked anonymity in crypto creates a haven for fraud, drug trade, and cybercrime.