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American Authorities Charge Samourai Wallet Founders
American authorities have charged crypto mixer Samourai Wallet founders for allegedly operating an unlicensed money-transmitting business. The U.S. Department of Justice announced that Keonne Rodriguez and William Lonergan Hill, the founders of Samourai Wallet, have been found guilty of executing over $2 billion in unlawful transactions and laundering over $100 million in criminal proceeds.
Unlawful Financial Transactions
Rodriguez and Hill combined unique features to execute anonymous financial transactions through Samourai Wallet. The wallet provided a “privacy” service that kept transactions private and identities masked, creating a haven for criminals to engage in large-scale money laundering and sanctions evasion.
Operation of Samourai
From 2015 to February 2024, the founders developed, marketed, and operated Samourai, a cryptocurrency mixing service that operated as an unlicensed money-transmitting business. They earned millions of dollars in fees from the service, intending for a substantial portion of the funds processed to be criminal proceeds passed through Samourai for concealment.
Twitter Encouragement for Criminal Activities
Rodriguez and Hill used social media, specifically Twitter, to encourage users to launder criminal proceeds through Samourai. For example, in June 2022, Rodriguez’s Twitter account posted a message regarding Russian oligarchs seeking to circumvent sanctions. Hill, using the Twitter account “Samourai Dev,” discussed the use of Samourai by criminals operating in online black markets such as Silk Road in private messages.
Government Crackdown on Cryptocurrency Crime
The U.S. authorities have intensified efforts to combat cryptocurrency-related crimes. Chainalysis’ Crypto Crime Report indicated a significant decrease in funds sent to mixers from illicit addresses, attributed to law enforcement and regulatory actions.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
