31.07.2025 03:35

William Lonergan Hill and Keonne Rodriguez, the creators of the Bitcoin mixer Samourai Wallet, have accepted responsibility for operating an unlicensed money transmitting business, pleading guilty on Wednesday. This plea bargain carries a maximum sentence of five years imprisonment for each defendant.

Initially pleading not guilty, the developers reversed their stance earlier this week, as evidenced by court documents. In exchange for their guilty pleas, the U.S. Department of Justice dropped a significantly more serious money laundering charge, which could have resulted in a potential 20-year prison sentence under established DOJ guidelines. The five-year sentence reflects the lesser charge of operating an unlicensed money transmitting business.

Samourai Wallet's functionality allowed users to obscure their cryptocurrency transactions. This feature, according to the DOJ and FBI, facilitated criminal activity, a claim the defendants allegedly ignored. Following the platform's closure and the subsequent arrests last year, the government's successful prosecution secured a conviction and avoided the risk of a trial loss.

Amanda Tuminelli, chief legal counsel for the DeFi Education Fund, highlighted the strategic implications of the plea deal on X (formerly Twitter). She observed that such agreements involve careful risk assessment for both sides; the defendants weigh a shorter sentence against admitting guilt, while the prosecution balances the potential for a trial defeat against a guaranteed conviction. The DeFi Education Fund previously voiced concerns about the fairness of the case, arguing that the desire for on-chain privacy transactions is commonplace.

Despite attempts to reach them for comment, lawyers representing Hill and Rodriguez have not responded to inquiries from internet sources. Tuminelli's X post further elucidated the complexities and inherent risks associated with plea bargains in such high-profile cases.