Samourai Wallet founders face charges for allegedly laundering $100M.
The DOJ alleges that Samourai facilitated illicit cryptocurrency transactions totaling $2 billion.
Rodriguez and Hill are facing potential sentences of up to 25 years due to charges of money laundering.
The founders of Samourai Wallet, Keonne Rodriguez, and William Lonergan Hill, have been accused by federal prosecutors of engaging in a conspiracy to commit money laundering and operating an unlicensed money-transmitting business.
According to the Department of Justice, their cryptocurrency mixing service facilitated more than $2 billion in illicit transactions, including the laundering of $100 million obtained from dark web markets. This service also enabled various instances of money laundering.
Authorities apprehended Rodriguez, the CEO of Samourai, in Pennsylvania, and they arrested Hill, the CTO, in Portugal. Both individuals face extremely grave charges. The conspiracy to commit a money laundering charge could result in a maximum prison sentence of 20 years, while the charge of operating an unlicensed money-transmitting business carries a potential penalty of up to five years.
Information about the Samourai Wallet
As per the indictment unveiled today in Manhattan federal court, Rodriguez and Hill collaborated on Samourai Wallet, a service that purportedly enhances privacy for cryptocurrency transactions.
However, the DOJ contends that this service was a front for a complex operation involving significant money laundering. Their services, Whirlpool and Ricochet, have facilitated transactions that could have obscured the origin of unlawfully obtained funds.
Throughout the years, these services have processed over 80,000 BTC, resulting in fees amounting to around $4.5 million. The alleged illicit activities revolve around the laundering of funds from underground online marketplaces like Silk Road and Hydra Market, along with various fraudulent schemes.
Legal Proceedings and Law Enforcement Comments
U.S. Attorney Damian Williams emphasized the gravity of the accusations, stating that Samourai served as a haven for criminals engaging in extensive money laundering and evading sanctions. The indictment reveals the active promotion of Samourai by Rodriguez and Hill for the purpose of laundering illegal proceeds. This is evident from various communications, such as tweets and private messages.
Law enforcement agencies like the IRS Criminal Investigation and the FBI greatly value collaboration between various jurisdictions in arrests. The IRS highlighted the significant amounts of money flowing through Samourai without proper oversight, emphasizing the operators’ failure to comply with regulations.
This case against Samourai Wallet is part of a broader effort to combat illicit activities in the cryptocurrency industry. The DOJ has shown a solid commitment to tackling crypto-related offenses, as evidenced by their previous actions against other cryptocurrency mixing services. This arrest represents a significant milestone in the ongoing efforts to ensure that cryptocurrency platforms adhere to anti-money laundering regulations and do not facilitate financial crimes. At the same time, Samurai’s website and mobile application have been taken over.
