Samourai Wallet CTO Sentenced for Hiding $237 Million in Crypto
William Lonergan Hill, CTO and co-founder of Samourai Wallet, received a four-year federal prison sentence. A New York judge condemned his role in helping criminals conceal over $237 million in illicit funds.
Hill pleaded guilty this year to conspiring to operate an unlicensed money-transmitting business. Prosecutors stated Samourai Wallet intentionally obscured Bitcoin transactions to avoid legal and financial safeguards.
The sentencing follows the five-year prison term given to CEO and co-founder Keonne Rodriguez on November 6. Both men must also serve three years of supervised release, pay $250,000 fines, and forfeit over $6.3 million in fees earned by Samourai Wallet.
Tools Used to Obscure Bitcoin Transfers
Samourai Wallet offered two main features to hide Bitcoin movements. The first, “Whirlpool,” launched in 2019, mixed Bitcoin among user groups to erase transaction sources on the blockchain.
The second, “Ricochet,” added extra transaction steps to break links between sender and receiver. Together, they processed more than 80,000 BTC, worth over $2 billion at the time, generating $6 million in fees.
Founders Encouraged Criminal Use
Evidence showed Hill and Rodriguez promoted Samourai Wallet for illegal purposes. Hill advertised on the darknet forum Dread, calling Whirlpool ideal for “cleaning dirty BTC.”
In 2020, Rodriguez urged hackers behind a major social media breach to use Samourai to launder stolen funds. Internal chats revealed Rodriguez described mixing as “money laundering for bitcoin.”
Law enforcement agencies involved included the IRS, FBI, Europol, Icelandic, and Portuguese authorities. Hill was extradited from Portugal in 2024.
Prosecutors say services designed to aid criminals in hiding illicit money violate the law, regardless of the technology involved.
