The legal battle surrounding privacy-focused crypto tools is taking a sharp turn as the co-founders of Samourai Wallet prepare to plead guilty to federal charges.
Keonne Rodriguez and William Lonergan Hill are expected to formally change their pleas during a court session on Wednesday, signaling a major shift from their previous not guilty stance.
Authorities allege that the pair operated Samourai as an unlicensed money-transmitting service and knowingly facilitated the laundering of billions in illicit funds, including transactions linked to dark web markets. They now face up to 25 years in prison: 20 for money laundering conspiracy and an additional five for operating without a license.
Their efforts to dismiss the case—arguing that federal guidance previously indicated no license was needed and that unintentional regulatory breaches wouldn’t be prosecuted—were unsuccessful. The trial had been set for November but may no longer proceed if the pleas are accepted.
The legal spotlight on Samourai echoes broader action against privacy-enhancing crypto tools. Roman Storm, a Tornado Cash co-founder, still awaits trial and could face up to 45 years in prison if found guilty of laundering and violating sanctions.
Meanwhile, Tornado Cash recently won a partial legal victory after a court ruled that the U.S. Treasury exceeded its authority in sanctioning the protocol. Still, prior cases have not ended well for developers: Dutch courts sentenced fellow Tornado developer Alexey Pertsev to over five years for facilitating illicit transactions.
These cases mark a turning point in how courts are treating open-source crypto privacy tools—raising questions about liability, intent, and the future of decentralized finance innovation.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
Source: https://coindoo.com/samourai-wallet-founders-to-plead-guilty-in-federal-crypto-case/