Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill will plead guilty to federal charges on Wednesday, reversing their initial not-guilty pleas in a high-profile case targeting cryptocurrency privacy tools. According to U.S. District Court filings for the Southern District of New York, both face charges of conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business, carrying maximum sentences of 25 years imprisonment.
The Department of Justice alleges their Bitcoin mixing service facilitated over $100 million in criminal proceeds, including money laundering and sanctions evasion. Prosecutors contend Samourai Wallet operated as a "haven for criminals" despite marketing itself as a privacy tool. The platform, which obfuscated Bitcoin transactions by pooling funds, was shut down following the founders' April 2024 arrest.
The plea reversal coincides with the conclusion of Roman Storm's trial, co-founder of Ethereum-based mixer Tornado Cash, who faces similar charges plus sanctions violations. Storm's case—involving over $1 billion in alleged laundered funds—wraps closing arguments Wednesday, with potential 45-year sentences if convicted. Both cases highlight intensified DOJ scrutiny of crypto privacy infrastructure.
Rodriguez and Hill previously sought dismissal citing a DOJ memo discouraging prosecutions for "acts of end-users" and FinCEN's opinion that Samourai didn't qualify as a money transmitter. Prosecutors rejected these arguments, proceeding despite policy shifts.