Keonne Rodriguez and William Lonergan Hill, the co-founders of privacy-focused Samourai Wallet, have finally given and plead guilty to their charges after a long grueling trial.
The pair submitted their filings to the New York federal court on Tuesday to what prosecutors are alleged to be an unlicensed money-transmitting business that was leveraged on by criminals to mask unlawful transactions.
When the pair first appeared on court in April 2024, they have denied any forms of wrongdoings.
The change in plea marks a dramatic turn in one of the highest-profile legal battles over cryptocurrency privacy tools in the U.S.
Rodriguez, Samourai’s CEO, and Hill, the chief technology officer, were charged with conspiracy to commit money laundering, which carried a maximium prison sentence of 20 years.
Additionally, the pair were also charged with operating an unlicensed money-transmitting business, which adds an additional five years to the sentencing, bringing the maximum punishment to 25 years behind bars.
Judge Denise Cote has scheduled hearings to discuss the updated pleas. Details on whether the guilty pleas will alter sentencing outcomes have not been disclosed. The trial was previously set for November 3.
Throughout the year, the co-founders vigorously contested the charges. In April, they sought to dismiss the case by stating a document from Deputy General Todd Blanche that said the DOJ won't prosecute crypto mixer operators for "unwitting violations of regulations."
This seemingly suggests that that pair was suggesting that they had no idea that their protocol was being used to mix illegal funds, but prosecutors weren't buying it.
Their lawyers later argued that the pair was also mislead by prosecutors who tricked them to believe that they didn't require a money transmitter license six months before they were eventually charged.
This attempt to to sway the prosecutor's case was also ineffective.
Samourai Wallet, like other crypto mixers, operated by blending multiple users’ transactions to obscure origins—an approach now drawing sharp scrutiny from U.S. law enforcement.
The guilty pleas land as the crypto industry closely watches the ongoing trial of Roman Storm, co-creator of fellow mixing protocol Tornado Cash.
Privacy advocates warn that convictions in these cases could set legal precedents criminalizing open-source privacy technology and significantly curtailing digital rights in decentralized finance.
SpaceCoin XYZ has launched its first satellite, initiating an ambitious plan to build an extraterrestrial decentralised infrastructure network with up to ten satellites by 2025.
KikyoFormer South Korean lawmaker Kim Nam-guk was sentenced to six months in prison for hiding $6.8 million in cryptocurrency during financial disclosures.
WeatherlyA Singaporean student lost $5,000 in seconds after connecting his crypto wallet to a phishing website he found through a fake Google ad. He has shared his story on TikTok to warn others about the dangers of online scams.
JoyDonald Trump’s remarks surface amidst concerns over Elon Musk’s growing political influence. Is this unease from the president-elect or business as usual?
CatherineLuxury brands and businesses like Printemps, S.T. Dupont, and Virgin Voyages are now accepting Bitcoin as payment, driven by its record value of over $108,000. This shift highlights growing interest in cryptocurrency for high-end purchases despite challenges like consumer education and regulatory barriers.
WeatherlyItaly’s privacy regulator has mandated OpenAI to run a six-month campaign to educate users on ChatGPT’s data collection practices, following an investigation into its AI model.
KikyoJapan's Fair Trade Commission plans to issue a cease-and-desist order against Google for using its market dominance to stifle competition. The investigation focuses on claims that Google forced manufacturers to pre-install its apps and excluded rivals through revenue-sharing deals.
AnaisBarefoot Investor Scott Pape exposed crypto scammers using his identity to deceive followers. Instead of waiting for Facebook to act, he engaged directly with the fraudsters, uncovering tactics like a fake "professor" promoting bogus trading signals to dupe investors.
CatherineSouth Korea and the U.S. have joined forces to develop technologies to prevent cryptocurrency theft, especially targeting North Korean hackers responsible for large-scale heists. The partnership includes research, tracking stolen assets, and tightening sanctions against networks aiding cybercrimes.
WeatherlySingapore has become a top crypto hub in 2024 by issuing more licenses and offering clear, supportive regulations, attracting major global players. In contrast, Hong Kong faces delays and restrictive policies, causing challenges for its crypto industry.
Anais