April 29, 2024 In a major crackdown on cryptocurrency-related crimes, the U.S. Attorney’s Office for the Southern District of New York has announced charges against Keonne Rodriguez and William Lonergan Hill, founders of the cryptocurrency mixing service Samourai Wallet. The charges include conspiracy to commit money laundering and operating an unlicensed money transmitting business. These charges stem from allegations that Samourai Wallet executed over $2 billion in unlawful transactions, including laundering over $100 million from illegal activities.

According to the U.S. Attorney’s Office, Rodriguez and Hill developed and marketed Samourai Wallet as a tool for enhancing user privacy but allegedly knew it served as a conduit for criminals to launder illicit proceeds. The service, which included features like “Whirlpool” and “Ricochet,” is accused of obfuscating the origins of cryptocurrency to prevent tracking by law enforcement.

Rodriguez was arrested in Pennsylvania and is expected to appear before a U.S. Magistrate Judge shortly, while Hill was apprehended in Portugal with U.S. authorities seeking his extradition. The indictment details that the duo openly invited users on platforms like Twitter to use Samourai Wallet for laundering purposes, and they also marketed it as a service for those engaged in criminal activities.

The case highlights ongoing concerns about the use of cryptocurrencies in illegal activities and the challenges regulators face in policing digital assets. The indictment serves as a stark reminder of the legal risks associated with operating unlicensed financial services in the cryptocurrency sector.

This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit and is one of several high-profile efforts by U.S. law enforcement to clamp down on cryptocurrency-related crimes. Both defendants face severe penalties if convicted, with the conspiracy to commit money laundering charge carrying a maximum sentence of 20 years in prison.