Samourai Wallet

The Samourai Wallet case critically exemplifies the ongoing clash between cryptocurrency privacy tools and regulatory efforts to combat illicit finance. While designed as a Bitcoin wallet with enhanced privacy features aimed at user anonymity, the platform was knowingly exploited to launder over $100 million in criminal proceeds, including funds from darknet markets like Silk Road and sophisticated hacking schemes. The founders’ guilty pleas in 2025 to operating an unlicensed money transmitting business highlight the challenges law enforcement faces in regulating decentralized, privacy-centric technologies that can facilitate major financial crimes. This landmark case underscores the urgent need for balanced policies that protect both legitimate privacy rights and prevent abuse by criminals leveraging crypto anonymity for money laundering. The enforcement actions against Samourai Wallet signal a firm regulatory stance on crypto mixers, reshaping the compliance landscape for cryptocurrency financial services in the United States.

The Samourai Wallet case centers on two Bitcoin privacy software developers in the U.S. who pleaded guilty in 2025 to charges related to running an unlicensed money transmitting business that facilitated the laundering of illicit Bitcoin proceeds. Their wallet allowed users to obscure transaction trails by mixing coins, which knowingly enabled criminal entities including darknet market users and hackers to launder approximately $200 million. Although initially charged with conspiracy to commit money laundering, these specific charges were dropped in a plea deal. The case marks a significant enforcement action by U.S. authorities in regulating crypto privacy tools and underscores ongoing challenges in balancing user privacy rights with preventing financial crime. Sentencing outcomes and the forfeiture of substantial illegal proceeds reflect a strong regulatory stance against crypto-facilitated money laundering. These enforcement efforts aim to curtail illicit finance risks associated with privacy-enhancing cryptocurrencies in the U.S.

Countries Involved

United States of America

Date Discovered / Reported

Charges and guilty plea publicly reported in 2025, with significant courtroom hearings in mid-2025 (July 29, 2025)

Cryptocurrency Involved

Bitcoin (BTC)

Type of Crime

Conspiracy to operate an unlicensed money transmitting business; conspiracy to commit money laundering (money laundering charges were dropped as part of the plea agreement)

Entities Involved

Samourai Wallet developers, specifically co-founders Keonne Rodriguez (CEO) and William Lonergan Hill (CTO); additional indirect involvement of criminal users including Russian oligarchs and darknet market participants such as those from Silk Road; hacker users located in the Southern District of New York (SDNY)

PEP Involvement

No direct evidence or reports indicating involvement of politically exposed persons (PEPs) in this case

Laundering Techniques Used

The Samourai Wallet operated as a Bitcoin privacy and mixing service, allowing users to obscure the origin and destination of Bitcoin transactions. The wallet enabled users to move Bitcoin from one address to another in a way that obscured transaction history through coin mixing techniques. This was exploited to obscure criminal proceeds, including those derived from darknet markets and other illicit activities. The service was openly marketed to the public despite knowledge that criminal proceeds were being obscured.

Estimated Value Laundered

Evidence presented by the U.S. Government cited approximately $200 million in criminal proceeds flowed through Samourai Wallet, including funds associated with the Silk Road darknet market.

Transaction Analysis Summary

According to prosecution evidence, blockchain records, business records, and user data demonstrated substantial use of Samourai Wallet for laundering illicit Bitcoin. The wallet had over 100,000 downloads, including users in the Southern District of New York, where at least one hacker user was identified. Transactions involved the strategic layering and obscuring of Bitcoin flows to mask their criminal origin. The movement of these funds through the wallet’s coin mixing and privacy features made tracing the source and destination of Bitcoin challenging for law enforcement before the indictment.

Regulatory/Enforcement Actions Taken

The U.S. Attorney’s Office for the Southern District of New York prosecuted the developers, who in July 2025 pleaded guilty to conspiracy to operate an unlicensed money transmitting business. Money laundering charges were specifically dropped as part of the plea deal. Fines totaling $650,000 were imposed on the co-founders ($250,000 on Rodriguez and $400,000 on Hill), and $237 million were forfeited to the government. Sentencing was scheduled for November 2025, with prison terms potentially up to five years and supervised release. One co-founder was placed under curfew; the other’s passport was confiscated, restricting international travel.

Links to Reports / Sources

Case Title / Operation Name:

Samourai Wallet Money Laundering Case

Country(s) Involved:

United States

Platform / Exchange Used:

Samourai Wallet (Bitcoin wallet with privacy features such as Ricochet and Whirlpool)

Cryptocurrency Involved:

Bitcoin (BTC)

Volume Laundered (USD est.):

Approximately $200 million in criminal proceeds laundered through the wallet

Wallet Addresses / TxIDs :

Not publicly disclosed; involved Bitcoin addresses and transactions obscured by mixing services

Method of Laundering:

Bitcoin mixing and coin tumbling via Whirlpool feature; layering transactions through multiple wallets to obscure origins

Source of Funds:

Darknet market proceeds (e.g., Silk Road), hacking proceeds, scam funds

Associated Shell Companies:

N/A

PEPs or Individuals Involved:

None publicly reported; focus on co-founders Keonne Rodriguez and William Lonergan Hill

Law Enforcement / Regulatory Action:

Guilty plea for running unlicensed money transmitting business; money laundering charges dropped in plea; forfeiture of $237 million; sentencing pending Nov 2025

Year of Occurrence:

2024-2025

Ongoing Case:

Ongoing

AML Network Risk Rating:

🔴 High Risk