Samourai Wallet Co-Founder Sentenced to Five Years
Keonne Rodriguez, Co-Founder of the privacy-focused Bitcoin app Samourai Wallet, was sentenced to five years in federal prison. He was convicted of operating an unlicensed money-transmitting business. The sentence was handed down by U.S. District Judge Denise Cote in Manhattan on Thursday.
Prosecutors stated the wallet helped hide more than $237 million in illegal Bitcoin transactions. These included funds linked to darknet markets, drug traffickers, and online scams. The case highlights increased government scrutiny of crypto-mixing services.
Judge Orders Maximum Sentence for Rodriguez
Judge Cote described Rodriguez’s actions as “very serious, anti-social criminal behavior.” She imposed the five-year maximum to hold him accountable and deter others in crypto.
During sentencing, the judge noted Rodriguez claimed he aimed to protect financial privacy. She rejected this defense, emphasizing the criminal use of digital currency. She also expressed concern over his failure to accept full responsibility.
Prosecutors accused Rodriguez of knowingly aiding criminals through the wallet’s privacy features. They mentioned the Nirvana hack and said Rodriguez was aware of illicit users as early as 2015.
Case Background and Plea Agreement
Samourai Wallet launched in 2015 to protect Bitcoin transaction privacy. It offered features like “Ricochet” and “Whirlpool” to obscure transaction trails. While privacy advocates supported these tools, prosecutors highlighted their use in illegal activities.
Over $2 billion in Bitcoin passed through the wallet’s privacy layers, with about $250 million tied to crimes. Rodriguez and co-founder William Lonergan Hill were arrested in April 2024. They initially faced money laundering and unlicensed money transmission charges.
In July 2025, they pled guilty to the lesser charge of unlicensed money transmission. They agreed to forfeit $237 million and pay fines totaling $6.65 million. Rodriguez will serve three years of supervised release after prison.
Rodriguez’s lawyer requested leniency, citing his financial privacy goals and prior community help. Rodriguez apologized at sentencing but the judge remained firm.
Prosecutors said Rodriguez encouraged criminals to use Samourai to boost earnings. They also referenced an alleged “escape plan” found at his home, indicating awareness of illegal activity.
Rodriguez’s co-founder Hill is set for sentencing on November 19 before Judge Cote. The case marks a wider government crackdown on crypto privacy tools and highlights tensions between privacy and law enforcement.
