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Samourai Wallet Execs Face 25 Years After Plea Change in Laundering Case

Key Takeaways

  • ​Samourai Wallet founders will plead guilty after previously denying charges linked to $2 billion in unlawful crypto transactions;
  • The pair faces up to 25 years in prison for money laundering and running an unlicensed money-transfer service;
  • Attempts to dismiss the case by citing DOJ guidance and prior legal advice were rejected by the court.

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Samourai Wallet Execs Face 25 Years After Plea Change in Laundering Case

Keonne Rodriguez and William Lonergan Hill, the two men behind the Samourai Wallet project, are expected to admit guilt in a New York courtroom.

Court filings submitted on July 29 confirmed that both will appear before a judge on July 30 to formally change their previous not-guilty pleas.

In April 2024, the pair had denied any wrongdoing after being charged by US prosecutors. Authorities accused them of operating a crypto mixing service that processed over $2 billion in unlawful transactions, including some connected to illegal online markets like Silk Road.

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The charges included running an unlicensed money-transfer service and conspiracy to launder funds.

Rodriguez, who served as the company’s CEO, and Hill, the Chief Technology Officer, each face up to 25 years in prison if convicted on both charges, 20 years for conspiracy to launder money and 5 years for the unlicensed business operation.

The trial had been scheduled to begin on November 3, but that date will likely change as a result of the new pleas.

In April, the defendants tried to have the case dismissed. They referred to an internal memo from Deputy Attorney General Todd Blanche stating that the Department of Justice did not plan to prosecute developers of crypto mixers for accidentally breaking rules.

Their lawyers also argued that prosecutors ignored earlier legal advice suggesting Samourai Wallet did not require a license to operate. Both arguments were rejected by the court.

On July 28, Vincent Anthony Mazzotta Jr. pleaded guilty to taking part in a cryptocurrency scam that collected more than $13 million. How did the case unfold? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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