The developers behind Samourai Wallet have entered a guilty plea in a high-profile crypto privacy case. Keonne Rodriguez and William Lonergan Hill, co-founders of the Bitcoin privacy app, admitted to operating an unlicensed money transmitting business in a deal that avoids harsher charges.
Their plea, reported by multiple outlets, drops the initial charge of money laundering conspiracy. This move could cut their maximum sentence from over 17 years to just five years.
They are expected to be sentenced on November 6, 2025.
Developers agree to forfeit $6.4 million
Alongside their plea, Rodriguez and Hill have agreed to forfeit $6.4 million—part of a larger $237.8 million tied to their platform, according to Bitcoin Magazine’s Frank Corva.
Samourai Wallet provided Bitcoin mixing services. These tools anonymize BTC transactions by making it harder to trace their origin. The service was shut down and its website seized in April 2024. Prosecutors originally claimed Samourai helped launder over $100 million, while the developers reportedly earned $4.5 million in fees.
“It was the users, not the software, that transmitted funds,” said Rodriguez, when required to state his role in court.
Crypto leaders say outdated laws threaten developers
The plea deal sparked mixed reactions across the crypto industry. Many welcomed the outcome but warned that outdated laws still pose a threat to software developers.
“Section 1960 is a grave threat to developer freedom. It must be amended,” said Jake Chervinsky, Chief Legal Officer at Variant.
Section 1960 of the U.S. Code targets unlicensed money transmitting businesses. Critics say the DOJ misuses the law to target noncustodial software developers who don’t directly handle user funds.
“These pleas don’t change the fact that the DOJ misinterprets the law,” added Amanda Tuminelli from the DeFi Education Fund.
Other cases still pending
The case echoes another ongoing U.S. trial. Roman Storm, developer of Tornado Cash, faces similar charges related to operating an unlicensed money transmission service and violating sanctions.
Despite the legal battles, both Tornado Cash and Samourai Wallet remain open source and operational. Other privacy-focused tools like Wasabi Wallet continue to serve users seeking anonymity.
Conclusion
The Samourai Wallet guilty plea may reduce sentencing, but the case raises broader concerns about how crypto privacy tools and open-source software are policed. As regulators crack down on developers, the crypto world continues to push for legal reform to protect innovation—and developer freedom.
0 responses to “Samourai Wallet guilty plea cuts jail time in Bitcoin privacy case”