In a significant crackdown on illicit cryptocurrency activities, the U.S. Attorney’s Office for the Southern District of New York announced the arrest and charging of Keonne Rodriguez and William Lonergan Hill, the founders and CEOs of Samourai Wallet, a cryptocurrency mixing service. The duo faces charges of conspiracy to commit money laundering and operating an unlicensed money transmitting business.
Rodriguez and Hill stand accused of developing, marketing, and operating Samourai Wallet as an unlicensed money transmitting business, facilitating over $2 billion in unlawful transactions and laundering more than $100 million in criminal proceeds. The charges stem from Samourai’s role as a haven for criminals to engage in large-scale money laundering, with funds originating from illegal dark web markets such as Silk Road and Hydra Market, as well as various fraudulent schemes and decentralized finance protocols.
The arrests were made possible through coordinated efforts between the U.S. Attorney’s Office, the Internal Revenue Service Criminal Investigation (IRS-CI), and the Federal Bureau of Investigation (FBI). Rodriguez was apprehended in the Western District of Pennsylvania, while Hill was arrested in Portugal, with extradition proceedings initiated to bring him to trial in the United States.
As part of the enforcement action, Samourai’s web servers and domain were seized in collaboration with law enforcement authorities in Iceland. Additionally, a seizure warrant was served on the Google Play Store, preventing further downloads of the Samourai Wallet application in the United States.
U.S. Attorney Damian Williams emphasized the grave nature of the charges, highlighting Rodriguez and Hill’s alleged role in facilitating large-scale money laundering and concealing criminal proceeds. He pledged continued efforts to dismantle criminal organizations exploiting cryptocurrency for illicit purposes.
IRS-CI Special Agent in Charge Thomas Fattorusso underscored the magnitude of the illicit transactions facilitated by Samourai Wallet, emphasizing the lack of oversight in processing over $2 billion without regulatory scrutiny. The closure of Samourai Wallet marks a significant victory in combatting online fraud and money laundering.
FBI Assistant Director in Charge James Smith echoed the commitment to combatting financial crime, emphasizing the utilization of technology to evade law enforcement detection. Rodriguez and Hill’s operation of Samourai Wallet provided criminals with a virtual haven for illegal transactions, amounting to over $2 billion in illicit activities.
The indictment outlines Rodriguez and Hill’s deliberate efforts to enable criminal conduct through Samourai Wallet’s features, including its Whirlpool mixing service and Ricochet functionality. These features facilitated the anonymization and concealment of criminal proceeds, attracting users engaged in illegal activities.
Rodriguez and Hill’s intent to launder criminal proceeds is further evidenced by their online communications, marketing materials, and social media presence, which openly encouraged users to exploit Samourai Wallet for illicit purposes. Their actions knowingly facilitated the laundering of millions in criminal proceeds, posing a significant threat to financial integrity and security.
Rodriguez and Hill face severe penalties, including up to 20 years in prison for conspiracy to commit money laundering and up to five years for conspiracy to operate an unlicensed money transmitting business. The indictment serves as a stark reminder of the legal consequences for individuals involved in illicit cryptocurrency activities.
The U.S. Attorney’s Office commended the investigative efforts of IRS-CI and the FBI, along with international partners, for their assistance in dismantling criminal enterprises. The case underscores the commitment to combatting financial crime and ensuring accountability for those who exploit cryptocurrency for illicit gain.
As the investigation unfolds, the defendants are presumed innocent unless proven guilty, with the charges outlined in the indictment serving as accusations awaiting judicial proceedings.