U.S. federal prosecutors are seeking five-year prison sentences for the founders of Samourai Wallet, a cryptocurrency mixing service accused of laundering hundreds of millions of dollars in illicit funds.
In a sentencing memorandum filed Friday, prosecutors requested 60-month prison terms for Keonne Rodriguez and William Lonergan Hill, who co-founded and operated the Samourai Wallet platform for nearly a decade. The document described the service as “a massive money laundering operation” that processed millions in criminal proceeds.
Allegations of laundering $237 million in illicit funds
According to the filing, between 2015 and April 2024, the Samourai Wallet platform facilitated the laundering of at least $237 million connected to drug trafficking, darknet marketplaces, cybercrime, fraud, and other serious offenses. Prosecutors allege that the founders not only built and maintained the platform but also marketed it directly to criminal users.
Hill, who served as the company’s Chief Technology Officer, reportedly acknowledged in his sentencing letter that he had invited “computer hackers and other criminals” to use Samourai to conceal the origins of their funds. Rodriguez, the company’s CEO, and Hill were both arrested in April 2024.
Plea deals and sentencing recommendations
A grand jury indicted both men in June 2025 on charges of conspiracy to commit money laundering and conspiracy to operate an unlicensed money-transmitting business. In July, Rodriguez and Hill each pleaded guilty to the latter charge as part of separate plea agreements.
Under federal sentencing guidelines, prosecutors calculated an offense level that could warrant up to 17 years in prison. However, because the statutory maximum under Section 371 is five years, prosecutors are recommending the full 60-month sentence for each defendant.
The Probation Office proposed a more lenient term of 42 months for both men. Defense attorneys, meanwhile, urged significantly shorter sentences — Rodriguez requested one year and a day, while Hill asked for time served, meaning no additional jail time.
Rodriguez’s sentencing hearing is scheduled for November 6, with Hill to follow on November 7.
A broader crackdown on crypto privacy tools
The Samourai Wallet case is part of a larger effort by U.S. authorities to rein in crypto privacy services accused of enabling financial crimes. Earlier this year, Tornado Cash co-founder Roman Storm was convicted of operating an unlicensed money transmission business, though the jury did not reach a verdict on related money laundering and sanctions charges.
Storm’s conviction has drawn backlash from within the cryptocurrency community, with several industry organizations — including the Ethereum Foundation and Solana Policy Institute — donating to his legal defense. Storm remains free on bail as his legal team pursues a post-trial motion seeking acquittal on all charges. If unsuccessful, he could face up to five years in prison.
