US Prosecutors Seek Maximum Sentence for Samourai Wallet Developers

US prosecutors seek five-year prison terms for Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill. They pled guilty to conspiracy for operating an unlicensed money transmitter.

  • The developers designed privacy features like Whirlpool and Ricochet, allegedly used to obscure transaction trails linked to over $237 million in illicit funds.
  • Charges include connections to drug trafficking, darknet markets, hacks, and fraud, with new allegations of murder-for-hire and child pornography ties.
  • Rodriguez and Hill requested time served, arguing their focus was on Bitcoin as digital cash rather than investment or scams.
  • Letters from the developers highlight their belief in financial privacy and personal independence.

A recent pardon for Binance founder Changpeng Zhao by President Trump after AML lapses is noted, while broader debates on privacy software continue.

  • The case parallels Tornado Cash developer Roman Storm's conviction for similar charges.
  • Ethereum Foundation has pledged support for such developers, amid growing interest in privacy coins like Zcash.
  • The outcome may signal increased regulatory action against non-custodial privacy tools.