The founders of cryptocurrency service Samourai Wallet have pleaded guilty to federal charges of operating an unlicensed money transmitting business according to court filings. William Lonergan Hill and Keonne Rodriguez face potential prison sentences of up to five years following their admissions.
Samourai Wallet, promoted as a privacy-enhancing tool, functioned as a cryptocurrency mixer designed to conceal transaction origins. U.S. authorities alleged the service facilitated over $100 million in illicit funds through money laundering activities.
The DeFi Education Fund has contested the Department of Justice’s legal approach, asserting prosecutors misinterpreted Section 1960 legislation in what they characterize as regulatory overreach. This prosecution aligns with similar actions against privacy-focused crypto services, including the ongoing case against Tornado Cash’s co-founder.
Legal observers note the case establishes consequential precedent regarding liability for developers creating privacy-centric financial tools. Sentencing for Hill and Rodriguez is scheduled for November, where penalties will be formally determined following their guilty pleas.