In a recent development, federal prosecutors have charged two individuals, Keonne Rodriguez and William Lonergan Hill, with allegations of aiding in the laundering of $100 million in criminal proceeds through the Samourai Wallet crypto-mixing service. The charges include money laundering conspiracy and operating an unlicensed money transmitting business spanning from 2015 to February 2024.
According to prosecutors, Samourai Wallet processed a staggering $2 billion in anonymous financial transactions during this period, providing what they describe as a “haven for criminals” to conduct large-scale money laundering and sanctions evasion activities. The indictment, unveiled in Manhattan on Wednesday, highlights the alleged involvement of Samourai in facilitating illegal financial activities, including laundering proceeds from dark web marketplaces such as Silk Road and Hydra Market, as well as various computer fraud schemes.
Rodriguez, 35, was arrested in western Pennsylvania on Wednesday, while Hill, 65, was apprehended in Portugal. US authorities intend to pursue Hill’s extradition to face charges in the United States.
Samourai Wallet, marketed as a privacy-focused application, boasted a global customer base and has been downloaded over 100,000 times. Rodriguez and Hill allegedly promoted the wallet’s ability to anonymize transactions through social media platforms like Twitter, attracting users, including those with dubious backgrounds.
The investigation led to the seizure of Samourai’s web servers in cooperation with Icelandic authorities and the removal of the application from the Google Play store through a warrant served to Google.
Samourai implemented features like “Whirlpool” and “Ricochet” to obscure the tracing of funds, generating substantial fees in the process. The “Whirlpool” service facilitated coordinated crypto exchanges among users, while “Ricochet” added intermediate transactions to disguise payment trails.
Reports from agencies like the UK’s National Crime Agency and Europol have previously flagged decentralized wallets like Samourai Wallet as potential tools for criminal misuse, citing their ability to complicate cryptocurrency tracing efforts.
The case, identified as US v. Rodriguez, is being heard in the US District Court, Southern District of New York (Manhattan).