Court sentences Samourai Wallet co-founder to four years in prison

Key points:

• William Hill, co-founder of Samourai Wallet, was sentenced to four years in prison for participating in a crypto mixer used for money laundering.
• His colleague Keonne Rodriguez previously received five years, and both have already paid more than $6,3 million in confiscated funds.
• Prosecutors claim that the developers originally created the service as a tool for transferring criminal proceeds.

William Lonergan Hill, co-founder of the Samourai Wallet crypto wallet, has been sentenced to four years in prison. According to the US prosecutor’s office, he participated in the operation of a cryptocurrency mixing service that was used to “wash millions in dirty money.”

The decision was handed down by the US District Court for the Southern District of New York. This came two weeks after his former colleague, Samourai CEO Keonne Rodriguez, was sentenced to the maximum term of five years. Hill served as the company’s chief technology officer.

Both pleaded guilty in July, although they had previously denied the charges.

Rodriguez and Hill were also fined $250 000 each. According to the prosecution, both have already paid more than $6,3 million in confiscation.

The prosecution claimed that the Samourai app was originally created as a tool for transferring criminal proceeds, and that its developers were aware of the service’s actual purpose.

In recent years, cryptocurrency mixers have attracted increasing attention from law enforcement agencies. In 2023, Tornado Cash developer Roman Storm was charged with money laundering, unlicensed money transfer, and sanctions violations. The jury was later unable to reach a verdict on some of the charges but found him guilty of unlicensed money transfer.

Justice Department spokesman Matthew J. Galeotti emphasized that “writing code” is not a crime in itself. Meanwhile, cryptocurrency supporters continue to collect donations in support of Storm and urge authorities to protect software developers when discussing digital asset regulation.