Takeaways:
- U.S. prosecutors are seeking five-year prison sentences for Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill after their guilty pleas.
- The pair admitted to operating an unlicensed money-transmitting business, linked to laundering $237 millionthrough the wallet’s mixing services.
- Money laundering charges were dropped under a plea agreement, but the co-founders must forfeit $237.8 million in assets.
- Sentencing is scheduled for November 6 and 7, 2025, with prosecutors pushing for the maximum penalty despite a lighter probation recommendation.
Federal prosecutors are asking a U.S. court to impose five-year prison termson Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, following their guilty pleas to conspiracy to operate an unlicensed money-transmitting business.
The request comes after a years-long investigation into Samourai Wallet’s Bitcoin mixing service, which authorities claim was used to launder over $237 million in proceeds from darknet operations, including Silk Road and Hydra Market.
Both Rodriguez and Hill were arrested in April 2024 and initially faced dual charges — conspiracy to commit money laundering and operating without a money-transmission license. As part of a July 2025 plea deal, they admitted guilt on the latter charge, while prosecutors agreed to drop the money laundering count.
Details of the Case and Sentencing
According to court filings, prosecutors allege that Samourai Wallet marketed its services explicitly for privacy and obfuscation purposes, allowing users to “conceal the origins of Bitcoin transactions.” The U.S. Department of Justice contends this effectively made the platform a money-laundering tool disguised as a privacy service.
Under their plea agreement, both founders have agreed to forfeit $237,832,360.55, equivalent to the value of funds that passed through Samourai’s mixing operations. While the Probation Office has recommended a 42-month term for each defendant, prosecutors are urging the court to impose the full five-year statutory maximum, arguing that the severity and scope of the scheme warrant the harshest penalty.
Sentencing is scheduled for November 6, 2025 (Rodriguez), and November 7, 2025 (Hill).
Broader Implications for Crypto Privacy
The Samourai case underscores the U.S. government’s escalating campaign against crypto privacy services, particularly those offering coin-mixing and anonymization features. The DOJ has taken a similar stance in cases against Tornado Cash founder Roman Storm and Bitcoin Fog operator Roman Sterlingov, citing national security and anti-money-laundering concerns.
Legal experts say the outcome could set a critical precedent for how privacy-enhancing crypto tools are treated under existing financial laws. Regulators are increasingly framing such services as unlicensed financial intermediaries, blurring the line between user privacy and criminal facilitation.
As sentencing approaches, the crypto community is closely watching whether the court will align with the Probation Office’s recommendation or adopt the DOJ’s tougher stance, a decision that could reshape the future of on-chain privacy technology in the United States.