Samourai Wallet Co-Founder Sentenced to Four Years, Highlighting Legal Risks for Crypto Privacy Tools

Quick Breakdown: 

• The co-founder of Samourai Wallet has received a four-year federal prison sentence for operating an unlicensed money-transmitting business that facilitated over $237 million in illicit transactions. 
• This follows his co-founder, Keonne Rodriguez, who received a five-year sentence earlier. 
• Their platform’s privacy features, including Whirlpool and Ricochet, drew federal scrutiny amid a broader crackdown on crypto mixers linked to money laundering and sanctioned actors.

Samourai Wallet Co-Founder sentenced, amplifying regulatory scrutiny on Crypto privacy tools

William Hill, co-founder of the privacy-focused Samourai Wallet, was sentenced to four years in federal prison for operating an unlicensed money-transmitting business. Prosecutors cited the platform’s facilitation of approximately $237 million in illicit transactions, including funds tied to darknet markets and hacks. 

Hill’s recent autism diagnosis and age contributed to a reduced sentence compared to co-founder Keonne Rodriguez, who was sentenced to five years earlier this year. Both men pleaded guilty in July to conspiracy related to the unlicensed business, leading to the dismissal of separate money laundering charges. 

The case underscores the government’s escalating efforts to regulate and criminalise privacy-enhancing crypto technologies widely used to obscure illicit funds.

Where does it leave the Legal Team that sought dismissal?

Further complicating the regulatory landscape, Samourai Wallet’s legal team had accused U.S. prosecutors of withholding critical exculpatory evidence. They alleged that the Financial Crimes Enforcement Network (FinCEN) had informed prosecutors months before the founders were charged that Samourai Wallet did not qualify as a “Money Services Business” (MSB), which would have exempted the firm from required licensing. 

The late disclosure pushed the defence to renew its request to have all charges dropped, arguing that the executives genuinely believed their services were legal. Their position also echoes the Justice Department’s broader effort to reassess how it handles crypto-related cases involving unintentional violations.

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