The two had previously pleaded not guilty as they face over 25 years in prison
The co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, have opted to change their pleas to guilty in a federal case alleging their involvement in a multibillion-dollar illegal money-transmitting scheme. Yesterday, court filings in New York revealed their intention to enter the new pleas formally this morning.
Rodriguez, the company’s CEO, and Hill, who served as CTO, were originally charged in April with operating Samourai Wallet as an unlicensed money-transmitting business. Prosecutors allege that the crypto mixing service processed more than $2 billion in transactions, some of which were connected to illegal online marketplaces, including the now-defunct Silk Road.
Both men face serious charges: conspiracy to commit money laundering, which could carry a sentence of up to 20 years, and operating without a proper license, which could add another five years, placing the maximum possible prison time at 25 years.
The decision to plead guilty marks a shift in the defense strategy, coming months after their attorneys sought to have the case dismissed. One argument cited an April memo from a top Justice Department official stating that crypto mixer developers would not be prosecuted for unknowingly violating regulatory laws. Another attempt to cast doubt on the charges pointed to earlier legal advice that suggested the wallet service did not require a money transmission license. Neither effort persuaded prosecutors to drop the case.
Samourai Wallet offered a crypto mixing tool aimed at enhancing user privacy by blending transactions, a service that regulators claim can also obscure criminal activity.
This case comes amid growing scrutiny of similar services. Tornado Cash developer Roman Storm is currently facing his own legal battle, raising broader concerns within the crypto community about the future of open-source privacy tools and their place in financial regulation.
