Crypto Mixer Samourai Wallet Founders Charged with Operating Unlicensed Money-Transmitting Business

The founders of the popular crypto mixer Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, have been charged by American authorities for allegedly operating an unlicensed money-transmitting business. The duo is accused of facilitating over $2 billion in unlawful transactions and laundering more than $100 million in criminal proceeds.

The U.S. Department of Justice stated that Rodriguez and Hill utilized unique features in their wallet to enable anonymous financial transactions, making it a haven for criminals to engage in large-scale money laundering and sanctions evasion. The Samourai Wallet’s “privacy” service allowed users to keep their transactions private and their identities masked, attracting illicit activity.

From 2015 to February 2024, the co-founders developed, marketed, and operated the cryptocurrency mixing service known as Samourai, earning millions of dollars in fees despite not having the necessary licenses. The DoJ alleges that a significant portion of the funds processed by Samourai were criminal proceeds intended for concealment.

Furthermore, Rodriguez and Hill used social media, particularly Twitter, to promote their services and invite users to launder criminal proceeds through Samourai. The DoJ cited examples of tweets and private messages where the founders discussed the use of their platform by criminals operating in online black markets such as Silk Road.

This crackdown on cryptocurrency crime comes as authorities are increasingly focusing on regulating the industry. Chainalysis’ Crypto Crime Report recently highlighted a decrease in funds sent to mixers from illicit addresses, indicating the impact of law enforcement and regulatory efforts in combating illegal activities in the crypto space.