Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill have changed their plea to guilty on charges involving their crypto mixing service, potentially facing up to 25 years in prison for conspiracy and unlicensed money transmission.
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Co-founders initially pleaded not guilty but reversed their plea in a New York federal court.
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The charges include conspiracy to commit money laundering and operating an unlicensed money-transmitting business.
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Legal experts highlight this case amid ongoing trials of other crypto mixers, signaling increased regulatory scrutiny.
Samourai Wallet co-founders plead guilty to crypto mixing charges, facing up to 25 years. Stay informed with COINOTAG’s latest crypto news updates.
What Led Samourai Wallet Co-Founders to Change Their Plea?
Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill changed their plea from not guilty to guilty in July 2025, following charges of running an unlicensed crypto mixing service. The service allegedly processed over $2 billion in transactions, some linked to illicit marketplaces. This shift comes after unsuccessful attempts to dismiss the case based on DOJ memos and legal advice.
How Serious Are the Charges Against Samourai Wallet Founders?
The charges include conspiracy to commit money laundering, carrying a maximum sentence of 20 years, and operating an unlicensed money-transmitting business, which adds up to five more years. Combined, Rodriguez and Hill face up to 25 years in prison if convicted on all counts. The case is being closely watched as it sets a precedent for crypto privacy tools.
What Was the Legal Strategy Before the Plea Change?
Before changing their plea, the co-founders attempted to dismiss the case citing a Department of Justice memo that discouraged prosecuting crypto mixers for unintentional regulatory violations. Their defense also claimed prosecutors withheld advice indicating no license was required. Despite these efforts, the court scheduled hearings to address the plea change, signaling a shift in legal tactics.
How Does This Case Compare to Other Crypto Mixer Trials?
| Crypto Mixer | Charges | Potential Sentence |
|---|---|---|
| Samourai Wallet | Money laundering, unlicensed transmission | Up to 25 years |
| Tornado Cash | Money laundering, sanctions violations | Up to 45 years |
What Is the Impact of These Legal Actions on Crypto Privacy Tools?
Legal proceedings against Samourai Wallet and Tornado Cash highlight the growing regulatory scrutiny of crypto mixers. Advocates warn that harsh rulings could criminalize privacy-enhancing tools, potentially stifling innovation in decentralized finance and restricting user privacy rights. The outcomes of these cases will likely influence future crypto regulations.
What Are the Next Steps in the Samourai Wallet Case?
Hearings to discuss the plea change were scheduled for July 31, 2025, with a trial initially set for November 3. The court has yet to disclose how the plea change will affect sentencing. Observers expect the case to set important legal precedents for crypto mixing services.
Frequently Asked Questions
What led to the Samourai Wallet co-founders’ guilty plea?
The co-founders changed their plea after facing serious charges involving unlicensed crypto mixing operations and failed attempts to dismiss the case based on DOJ guidance.
How long could the Samourai Wallet founders be imprisoned?
They could face up to 25 years in prison, combining sentences for conspiracy to commit money laundering and operating an unlicensed money-transmitting business.
What precedent does this case set for crypto mixers?
This case signals increased legal risks for crypto mixing services, potentially influencing future regulation and enforcement actions against privacy tools.
Key Takeaways
- Samourai Wallet co-founders changed their plea to guilty: Facing up to 25 years for crypto mixing-related charges.
- Legal efforts to dismiss the case failed: DOJ memos and withheld advice did not prevent prosecution.
- Case highlights regulatory scrutiny: Sets precedent impacting crypto privacy tools and decentralized finance innovation.
Conclusion
The Samourai Wallet co-founders’ guilty plea marks a significant development in crypto mixing enforcement, underscoring the increasing legal risks for privacy-focused services. As regulatory bodies intensify scrutiny, the case will influence future crypto compliance and privacy debates. Stay updated with COINOTAG for ongoing coverage of this evolving story.
