In a significant ruling, William Hill, co-founder of the privacy-centric Samourai Wallet, has been sentenced to four years in federal prison for running an unlicensed money-transmitting operation. According to the experts cited in the publication, the situation is becoming critical as this decision highlights the ongoing efforts by the US government to crack down on privacy tools within the cryptocurrency space.
Ruling on Crypto Privacy Infrastructure
The ruling, delivered on November 19, 2025, comes as part of a broader initiative by federal authorities to regulate crypto privacy infrastructure. Hill's sentence is notably lighter than that of his co-founder, Keonne Rodriguez, who received a five-year sentence earlier this year for similar charges. Prosecutors cited Hill's age and a recent autism diagnosis as mitigating factors in determining his punishment.
Guilty Pleas and Charges
Both Hill and Rodriguez pleaded guilty in July 2025 to conspiracy charges related to operating an unlicensed money-transmitting business, which resulted in the dismissal of more severe money laundering allegations. The US Department of Justice revealed that Samourai Wallet was involved in facilitating over $237 million in illegal transactions, underscoring the scale of the operation.
Federal Crackdown on Crypto Privacy Tools
This case is part of a larger federal crackdown on crypto privacy tools, following the conviction of Tornado Cash developer Roman Storm, indicating a significant shift in how authorities are approaching the regulation of cryptocurrency privacy solutions.
In a related development, Kunal Mehta has admitted guilt in a major Bitcoin laundering case involving over 4,100 stolen Bitcoins. This case highlights the ongoing challenges in regulating cryptocurrency crime, contrasting with the recent sentencing of William Hill for operating an unlicensed money-transmitting business. For more details, see read more.
