The developers of the privacy-focused Bitcoin application Samourai Wallet have pleaded guilty to illegal activities related to money transmission.
Guilty Pleas
Keonne Rodriguez and William 'Bill' Lonergan Hill pleaded guilty in the Southern District of New York, admitting to a conspiracy charge linked to the wallet's mixing services, which authorities claim laundered over $100 million in criminal proceeds.
Plea Agreement
As part of the plea deal, they avoided a more serious charge of money laundering conspiracy that could have led to 20 years in prison. Instead, they now face a maximum of five years, with sentencing scheduled for November. They also agreed to forfeit nearly $238 million, with $6.3 million to be paid ahead of sentencing.
Context and Implications
Rodriguez and Hill were initially charged in April and pleaded not guilty, but their guilty pleas come as a jury deliberates in the high-profile Tornado Cash trial, which involves similar allegations. Hill, residing in Portugal, has been ordered back to New York to serve house arrest under closer supervision. Prosecutors indicated that they extended the plea offer while the other trial was ongoing.
The guilty pleas by the Samourai Wallet developers raise questions about the legality of such services, which are often misused by criminals to obscure illegitimate funds.
