- The arrest and charging of Samourai Wallet’s co-founders highlight the growing regulatory scrutiny on cryptocurrency-related businesses.
- The Department of Justice’s actions indicate a concerted effort to crack down on platforms suspected of facilitating illegal activities, particularly money laundering.
Two co-founders of the cryptocurrency mixing service Samourai Wallet, CEO Keonne Rodriguez and Chief Technology Officer William Lonergan Hill, have been apprehended and charged by the Department of Justice (DOJ) for their involvement in alleged money laundering activities, according to prosecutors.
Rodriguez, aged 35, and Hill, aged 65, were accused of operating Samourai Wallet, described as an unlicensed money-transmitting business. The charges allege that the platform was implicated in over $2 billion worth of unlawful transactions and facilitated more than $100 million in money laundering transactions from illegal dark web markets, including Silk Road.
U.S. Attorney Damian Williams emphasized the gravity of the allegations, stating that Rodriguez and Hill allegedly facilitated the laundering of over $100 million of criminal proceeds from various sources, including Silk Road and Hydra Market, along with numerous computer hacking and fraud campaigns. The authorities, in collaboration with law enforcement partners, expressed their commitment to dismantling criminal organizations utilizing cryptocurrency for illicit activities.
Rodriguez was reportedly arrested on Wednesday morning and is expected to appear before a judge in Pennsylvania either today or on Thursday. Meanwhile, Hill was apprehended in Portugal, and the U.S. is seeking his extradition.
In response to the charges, Samourai’s web servers and domain were seized, and the application is no longer accessible for download from the Google Play Store in the U.S.
Special Agent in Charge Thomas Fattorusso of the IRS-CI highlighted the closure of Samourai Wallet, signaling the enforcement actions taken against the alleged illicit activities associated with the platform.
The DOJ alleges that Rodriguez and Hill intentionally designed Samourai to offer features conducive to criminal conduct, including a crypto mixing service called “Whirlpool,” which purportedly facilitated money laundering. Moreover, prosecutors claim that the co-founders encouraged users to launder criminal proceeds through the mixer on social media platforms.
Hill’s purported discussion of Samourai’s use by criminals in online black markets on social media was cited by prosecutors as evidence of his involvement in facilitating illicit activities.
The charges against Rodriguez and Hill include money laundering and operating an unlicensed money transmitting business, carrying potential maximum sentences of 20 years and five years, respectively.
This development adds to a series of legal actions taken by U.S. prosecutors against crypto-mixing services, with previous charges brought against Tornado Cash founders Roman Storm and Roman Semenov for money laundering offenses last year.
Alleged Money Laundering Charges for Samourai Wallet Co-founders
The arrest and charging of Samourai Wallet’s co-founders for alleged money laundering have raised significant concerns within the cryptocurrency community. With the platform shut down and legal proceedings underway, the case underscores the increasing scrutiny and regulatory pressure on crypto-related businesses. The outcome of this case will likely have implications for the future regulation of cryptocurrency services and the enforcement of anti-money laundering laws in the digital asset space.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
