Samourai Wallet Founders Strike Plea Deal in U.S.

Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill have pleaded guilty in the Southern District of New York to conspiracy to operate an unlicensed money transmitting business, after prosecutors dropped the more serious money laundering charges. They admitted that their Bitcoin mixing service was used to launder over $100 million in illicit funds. As part of the plea deal, both Rodriguez and Hill face a maximum sentence of 5 years, a reduction from the original 25, and agreed to forfeit nearly $238 million, with more than $6 million due before sentencing in November. Prosecutors emphasized that the pair continued to operate and promote Samourai Wallet despite knowing about its use in criminal activity. The case coincides with the conclusion of the Tornado Cash trial, intensifying debate about the legal risks for crypto software developers. Privacy advocates warn that prosecuting developers for creating privacy tools could have far-reaching consequences for the crypto industry.