Samourai Wallet Co-Founder Gets 4 Years for Crypto Mixing Scandal

William Hill, co-founder of Samourai Wallet, was sentenced to four years in prison for operating an unlicensed crypto mixing service that processed over $237 million in illicit funds. His co-founder received five years.

William Hill, co-founder of Samourai Wallet, was sentenced to four years in federal prison for operating an unlicensed money-transmitting business that processed over $237 million in illicit funds. Prosecutors argued that Samourai Wallet’s privacy features, including coin-mixing and transaction-obfuscation tools, were knowingly designed and promoted to facilitate money laundering and conceal criminal proceeds. Hill’s sentence was reduced due to his advanced age and recent autism diagnosis, while his co-founder, Keonne Rodriguez, received a five-year sentence. Both pleaded guilty to conspiracy charges, resulting in the dismissal of more serious money-laundering allegations. In addition to prison time, Hill and Rodriguez were ordered to pay $250,000 fines and forfeit over $6.3 million. The case marks a significant precedent in the U.S. government’s crackdown on crypto privacy tools, highlighting increased regulatory scrutiny and enforcement against unlicensed cryptocurrency mixing services. The verdict has intensified debate over the legality and future of privacy-focused crypto platforms, with regulators emphasizing that privacy features cannot shield illegal activities.