According to CryptoPotato, two co-founders of a crypto mining service named Samourai Wallet are facing charges for allegedly conducting unlawful transactions worth $2 billion. The co-founders, Keonne Rodriguez and William Lonergan Hill, are each charged with money laundering and operating an unlicensed money transmitting business. The former charge carries a maximum prison sentence of 20 years.
The U.S. Attorney’s Office of the Southern District of New York stated that Rodriguez and Hill were arrested on April 24, 2024. Rodriguez was apprehended in the United States, while Hill was detained in Portugal. The US is seeking Hill's extradition. Following their arrest, authorities seized Samourai’s domain and servers, making the application unavailable for download in the United States.
Rodriguez and Hill developed and operated Samourai from 2015 to 2024. The service included a cryptocurrency mixer called Whirlpool and a hopping service named Ricochet. Prosecutors allege that these features helped to conceal the source of criminal proceeds, serving as a “safe haven” for criminals looking to launder illicit funds. They further claimed that the defendants knowingly processed a substantial portion of criminal proceeds through Samourai for purposes of concealment.
Through Whirlpool and Ricochet, Samourai reportedly executed more than $2 billion worth of unlawful transactions and laundered $100 million in crime proceeds from illegal dark web markets. Rodriguez and Hill allegedly encouraged users to launder criminal proceeds using Samourai, earning $4.5 million in fees from Whirlpool and Ricochet.
Rodriguez and Hill are each charged with one count of conspiracy to commit money laundering and one count of conspiracy to operate an unlicensed money-transmitting business. Each of these charges carries a maximum prison sentence of 20 years and five years, respectively.
The US government continues to intensify its crackdown on crypto mixers, which are believed to be used by criminal elements for money laundering. In March, federal prosecutors scored a victory against Roman Sterlingov, operator of the crypto mixer Bitcoin Fog, who was found guilty of charges relating to money laundering. Other cryptocurrency mixers such as Tornado Cash and Blender.io have previously been sanctioned by the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC).