The founders and CEO of Samourai Wallet, a cryptocurrency mixing service, have been arrested and charged with money laundering and operating an unlicensed money transmitting business. The service allegedly facilitated over $2 billion in unlawful transactions, including more than $100 million in money laundering from illegal dark web markets.
Key Takeaways
- Arrests and Charges: Keonne Rodriguez, CEO, and William Lonergan Hill, CTO, were arrested and charged with conspiracy to commit money laundering and operating an unlicensed money transmitting business.
- Scale of Operations: Samourai Wallet executed over $2 billion in unlawful transactions and facilitated more than $100 million in money laundering.
- Law Enforcement Actions: The U.S. authorities, in coordination with international partners, seized Samourai’s web servers and domain, and removed its mobile application from the Google Play Store.
- Criminal Intent: The founders allegedly designed the service to assist criminals in concealing the source of their illicit funds.
Arrests and Charges
Keonne Rodriguez, the CEO and co-founder of Samourai Wallet, and William Lonergan Hill, the CTO and co-founder, have been arrested and charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. Rodriguez was arrested in Pennsylvania, while Hill was apprehended in Portugal, with the U.S. seeking his extradition.
Scale of Operations
From 2015 to 2024, Samourai Wallet facilitated over $2 billion in anonymous financial transactions. The service was marketed as a privacy tool but was allegedly used to launder over $100 million in criminal proceeds from dark web markets like Silk Road and Hydra Market, as well as various fraud schemes.
Law Enforcement Actions
In a coordinated effort with Icelandic authorities, U.S. law enforcement seized Samourai’s web servers and domain. A seizure warrant was also served on the Google Play Store, making the Samourai Wallet application unavailable for download in the United States.
Criminal Intent
Rodriguez and Hill allegedly designed Samourai Wallet to assist criminals in concealing the source of their illicit funds. The service offered features like “Whirlpool” for mixing cryptocurrency and “Ricochet” for adding intermediate transactions, making it difficult for law enforcement to trace the funds. Marketing materials and social media posts by the founders openly invited users to launder criminal proceeds through the service.
Legal Proceedings
Rodriguez and Hill face charges that carry a maximum sentence of 20 years for money laundering and five years for operating an unlicensed money transmitting business. The case is being handled by the U.S. District Court for the Southern District of New York, with Assistant U.S. Attorneys Andrew K. Chan and David R. Felton leading the prosecution.
