US Officials Charge Samourai Wallet Founders with Laundering Over $100 Million Through Bitcoin Mixer

The US Department of Justice has recently accused Keonne Rodriguez and William Lonergan Hill, the creators of Samourai Wallet, of running a money-transmitting service without proper registration and facilitating over $100 million in illicit financial transactions.

This case highlights the legal responsibilities of digital wallet services to comply with financial regulations, emphasizing the importance of registration and oversight in preventing illegal activities.

DOJ Charges Samourai Wallet Founders in $100 Million Crypto Laundering Case

The US Department of Justice has charged Keonne Rodriguez and William Lonergan Hill, founders of Samourai Wallet, with running a cryptocurrency laundering scheme reportedly worth $100 million.

The charges, unsealed by the Southern District of New York, allege that the duo developed and marketed Samourai Wallet as a crypto mixer—a service that blends various digital assets to obscure the trail of the underlying transactions.

They operated without regulatory approval and processed over $2 billion in transactions.

• Key Allegations: The service is accused of helping launder money from dark web markets and other cybercriminal activities.
• Legal Stance: US Attorney Damian Williams highlighted the efforts of law enforcement to track down and eliminate networks exploiting cryptocurrencies for illegal purposes.

U.S. Authorities Shut Down Samourai Wallet Over $100 Million Money Laundering Operation

The U.S. Department of Justice has taken decisive action against Keonne Rodriguez and William Lonergan Hill, founders of Samourai Wallet, for allegedly facilitating the laundering of over $100 million. These funds, sourced from illicit activities such as the Silk Road and Hydra Market, as well as other hacking and fraud schemes, were processed through their cryptocurrency service. According to U.S. Attorney statements, this case underscores the government’s commitment to tackling criminal organizations that exploit digital currencies to hide illegal operations.

As part of a coordinated international effort, law enforcement has seized Samourai Wallet’s servers and blocked its mobile applications, effectively ceasing its operations. The Google Play Store has also removed the app. This operation highlights the extensive investigative work by the IRS and FBI, emphasizing the increasing focus on regulating financial transactions in the cryptocurrency sector.

• Key Details:
  • Samourai had 10,899.72 BTC ($700 million) in unspent transactions as of Wednesday.
  • Despite the seizure, the non-custodial nature of the wallet means users retain access to their funds.

This case marks a significant step in regulatory enforcement within the digital currency space, reflecting the growing scrutiny of financial flows within the ecosystem.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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