The years-long federal case against the founders of privacy-focused Samourai Wallet is taking a major turn.
Summary
- Samourai Wallet founders to plead guilty in money laundering case.
- The outcome of the case may influence the ongoing Tornado Cash trial.
- The co-founders face up to 25 years in prison if sentenced.
According to court filings dated July 29, Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill will formally plead guilty in their money laundering case. The two were arrested back in April 2024, after the U.S. Department of Justice accused them of operating an unlicensed money-transmitting business and facilitating more than $100 million in illegal transactions.
Prosecutors claim the founders positioned Samourai as a “safe haven” for mixing crypto transactions, inviting and enabling illicit actors to use the platform to evade sanctions. After their indictment, both men pleaded not guilty and pushed back, arguing the case lacked legal grounds.
For a while, it looked like the tide might turn in their favor. Earlier this year, the defense revealed that FinCEN had privately determined Samourai didn’t meet the definition of a money transmitter and accused the DOJ of suppressing the evidence. That revelation sparked speculation that the charges could be dropped entirely.
However, the luck didn’t last long, and both founders are now staring down at up to 25 years behind bars if sentenced. Beyond the potential jail time, the guilty pleas also carry weight for another high-profile case still playing out.
How this impacts Tornado Cash’s battle
Roman Storm, the co-founder of Ethereum-based mixer Tornado Cash, is currently on trial for similar charges. The DOJ accused Storm and his co-developers of enabling the laundering of funds through Tornado’s smart contracts, some of which were later linked to North Korean hackers and sanctioned entities.
One of Storm’s co-founders, Alexey Pertsev, has already been sentenced by a Dutch court. Storm, however, maintains his innocence and continues to fight the charges.
With Samourai’s founders preparing to plead guilty, pressure is mounting that the case could set a potential precedent that prosecutors may now lean on in the Tornado case, particularly as both projects face near-identical allegations around privacy tech and its use by illicit actors.
Still, the industry members are rallying in support of both firms.
War against privacy?
Several Industry figures, including Ethereum co-founder Vitalik Buterin have long defended both Samourai Wallet and Tornado Cash, arguing that writing code shouldn’t be treated as a crime. Many have emphasized that privacy is fundamental to the industry, and that the teams shouldn’t be held responsible for how bad actors use their tools.
News of the impending guilty pleas has reignited the debate. On X, one user warned that the outcome could set a dangerous precedent that intimidates future developers and stifles innovation.
The Samourai wallet founders’ guilty pleas are now scheduled for Wednesday, July 30, 2025, in the U.S. District Court for the Southern District of New York.
