Founders of Samourai Wallet Charged with Laundering $100 Million in Crime Proceeds
Two founders of the popular crypto-mixing service Samourai Wallet have been charged by federal prosecutors with laundering a staggering $100 million in crime proceeds. Keonne Rodriguez and William Lonergan Hill are facing charges of money laundering conspiracy and operating an unlicensed money transmitting business from 2015 through February 2024.
According to US prosecutors, Samourai Wallet was used to process $2 billion in anonymous financial transactions, providing a safe haven for criminals to engage in large-scale money laundering and sanctions evasion. The indictment, unsealed in Manhattan, alleges that the service laundered money from illegal darkweb marketplaces such as Silk Road and Hydra Market, as well as various computer fraud schemes.
Regulators globally have been cracking down on crypto mixers, which are designed to obscure the origins and destinations of certain transactions. In a similar case, the founder of a mixing service known as Bitcoin Fog was recently convicted in Washington for helping launder tens of millions of dollars from darknet markets.
Rodriguez, 35, was arrested in western Pennsylvania, while Hill, 65, was arrested in Portugal. US authorities are seeking Hill’s extradition. The charges carry a maximum sentence of 25 years in prison. Rodriguez was the company’s CEO, and Hill was the chief technology officer.
Samourai Wallet, marketed as a privacy program with over 100,000 downloads, offered services such as “Whirlpool” and “Ricochet” to disguise transactions and prevent tracing of funds. The service allegedly made millions in fees from these services.
The case has drawn attention from law enforcement agencies globally, with the UK’s National Crime Agency and Europol both identifying Samourai Wallet as a potential tool for criminals. The case is ongoing in the US District Court, Southern District of New York.
As authorities continue to crack down on illicit activities in the crypto space, the case of Samourai Wallet serves as a stark reminder of the risks associated with anonymous financial transactions.
