Samourai Wallet, a crypto mixing service, finds itself at the center of a legal dispute. The founders are looking to change their pleadings to guilty.
Founders' Plea Change
Co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, are preparing to plead guilty in a federal case linked to their crypto mixing service. Court documents indicate they will formally change their pleas on Wednesday morning.
Court Hearings
Previously, in April 2024, Rodriguez and Hill had pleaded not guilty. They were charged with operating an unlicensed money-transmitting business and conspiring to commit money laundering, serious allegations that could carry up to 25 years in prison. According to federal prosecutors, more than $2 billion in suspicious transactions flowed through Samourai.
Industry Risks
The acknowledgment of guilt from Samourai’s founders comes as another mixing case unfolds, involving Tornado Cash developer Roman Storm, who faces similar charges. Privacy advocates warn that such cases could set a dangerous precedent, potentially criminalizing open-source software development and undermining essential privacy rights in decentralized finance.
As law enforcement increases scrutiny over privacy tools, the implications for the crypto industry appear increasingly uncertain, raising concerns among privacy rights advocates.
