November 7, 2025 — In a landmark federal case, Keonne Rodriguez, co-founder of the bitcoin-mixing platform Samourai Wallet, has been sentenced to five years in prison for his role in operating an unlicensed money-transmitting business that facilitated criminal transactions.
Image of Samourai Wallet’s team taken in 2019 (Source: Yahoo)
Key Facts & Background of Samourai Wallet’s Case
- The charges stem from Samourai Wallet’s development and use of the “Whirlpool” mixing service, which enabled users to obfuscate the origins of bitcoin transactions. Prosecutors allege that the service enabled over US$2 billion in unlawful transactions and laundered more than US$100 million in illicit proceeds.
- In April 2024, the U.S. Department of Justice (DOJ) unsealed an indictment charging Rodriguez and co-founder William Lonergan Hill with conspiracy to commit money laundering and conspiracy to operate an unlicensed money-transmitting business.
- Rodriguez and Hill later pleaded guilty in July 2025 to the unlicensed money-transmitting business charge, paving the way toward sentencing.
- Rodriguez’s sentence of five years is the maximum permitted under the statute for his plea, and he was ordered to pay a US$250,000 fine plus restitution tied to the illegal operation.
- Hill is scheduled for sentencing later in November 2025.
This prosecution underscores the increasing scrutiny of crypto-mixing services by U.S. law enforcement. The Samourai case highlights how tools designed for enhancing transaction privacy can be leveraged for large-scale money laundering, dark-web commerce, and sanction evasion, thus raising questions around the legal and regulatory status of non-custodial wallets and mixers.
Implications for the Crypto Industry
- Developers and wallet providers may face greater regulatory exposure if their tools facilitate or enable illicit fund flows.
- Non-custodial wallets and mixing services (previously considered low-risk) must now reckon with potential liability for unlicensed money transmission or aiding money laundering.
- The sentence may serve as a deterrent to similar services and prompt tighter compliance expectations for privacy-enhancing crypto infrastructure.
What Happens Next
Rodriguez will begin serving his sentence, while Hill awaits sentencing. Meanwhile, stakeholders in the crypto industry are closely watching how this case influences future enforcement activities, regulatory clarifications, and the broader debate over privacy versus compliance in blockchain tech.
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