Samourai Wallet Developers Plead Guilty in $100M Bitcoin Mixing Case

The developers behind Bitcoin privacy tool Samourai Wallet have pleaded guilty to conspiracy charges for operating an unlicensed money transmitting business, a significant shift from their earlier not guilty pleas. Keonne Rodriguez and William “Bill” Lonergan Hill entered their pleas Wednesday before U.S. District Judge Denise Cote in the Southern District of New York, avoiding more severe money laundering charges that carried up to 20 years in prison.

Under the plea agreement, prosecutors dropped the money laundering charge, reducing their maximum sentence to five years. Both Rodriguez and Hill agreed to forfeit nearly $238 million, with $6.3 million due before their November sentencing. Until then, they remain under house arrest; Hill, a Portugal resident, must relocate to New York for the duration.

Prosecutors allege Samourai Wallet was used to launder more than $100 million in illicit funds. The plea deal coincides with the high-profile trial of Roman Storm, developer of Tornado Cash, another crypto mixing service accused of enabling money laundering. Storm’s trial concluded Wednesday, with a jury now deliberating.

The case underscores growing U.S. enforcement against crypto privacy tools seen as facilitating illicit transactions. Mixing services like Samourai Wallet and Tornado Cash have drawn scrutiny from regulators and law enforcement amid rising concerns over money laundering and sanctions evasion in the cryptocurrency sector.

This development marks a major legal turning point in the debate over privacy tools and compliance within the crypto ecosystem, with broader implications for developers building similar technologies. Sentencing for Rodriguez and Hill is scheduled for later this year, and the outcome could set precedent for future cases targeting crypto mixers and their creators.