Prosecutors Seek Five-Year Sentence for Samourai Wallet Founders

U.S. prosecutors have requested a five-year prison sentence for Samourai Wallet co-founders Keonn Rodriguez and William Lonergan Hill, according to a memorandum filed in court on October 31, 2025. The developers of the crypto privacy tool were arrested in April 2024, accused of operating an unlicensed money transfer business and laundering illicit funds. The U.S. Department of Justice (DOJ) alleged that Samourai Wallet facilitated over $100 million in illegal transactions, connecting its tools to drug trafficking, cybercrime, and online fraud. Hill was released on $1 million bail, and both men denied any wrongdoing. From Arrest to Plea Deal In July 2025, the pair reached a plea agreement with prosecutors. The money laundering charge was dropped, leaving the lesser offense of operating an unlicensed money transfer business. Despite the partial victory, prosecutors are now seeking the maximum sentence allowed by law — five years in prison. “For nearly a decade, Rodriguez and Hill owned and operated a massive money laundering service known as Samourai Wallet, which laundered millions of dollars in criminal proceeds on behalf of its clients,” the DOJ memorandum stated. Prosecutors estimate that around $237 million flowed through Samourai Wallet between 2015 and April 2024, allegedly tied to drug sales, cyberattacks, and fraud. The filing further claims that Hill promoted the platform to cybercriminals and knew it was being used for illegal activity Defense Calls the Request “Unreasonably Harsh” Defense attorneys argue that the government’s request is excessive and unfair given that both defendants cooperated and accepted responsibility. Rodriguez’s lawyers asked for a sentence of one year and one day, while Hill’s defense requested credit for time served and immediate release. Sentencing is scheduled for November 6 and 7, 2025, and the outcome could shape how regulators treat privacy-focused crypto projects moving forward.

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Source: Coinpaper