On Apr. 24, DoJ issued charges against crypto mixer founders.
DoJ unsealed indictment charging Samourai Wallet CEO, Keonne Rodriguez, William Lonergan Hill, chief technology officer in $100mn money laundering conspiracy.
Rodriguez, Hill are co-founders of Samourai, charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.
Allegations
From about 2015 to Feb. 2024, Rodriguez and Hill developed, marketed, operated a cryptocurrency mixing service known as Samourai, offered as privacy service.
Earned millions of dollars in fees via unlicensed money transmitting business.
Samourai unlawfully combined multiple unique features to execute $2bn in anonymous financial transactions for its customers; laundered over $100mn of crime proceeds.
The Samourai app, downloaded over 100k times, allowed users worldwide to store private keys for BTC addresses and facilitated transactions via centralized server.
Features like Whirlpool,Ricochet aided in concealing source of criminal proceeds by preventing blocktrain tracing; Whirlpool transactions made $3.4mn, Ricochet, 1.1mn.
Rodriguez, Hill knew Samourai was haven for criminals to engage in large-scale money laundering, sanctions evasion; passed criminal proceeds for purposes of concealment.
Laundered proceeds originating from illegal darkweb markets, like Silk Road,Hydra Market; various wire fraud, computer fraud schemes, including a web-server intrusion.
Spearphishing scheme, schemes to defraud multiple decentralized finance protocols.
Rodriguez, Hill openly encouraged criminal proceeds to be laundered through Samourai via Twitter, marketing materials; acknowledged use by black market criminals.
Enforcement
Rodriguez was arrested, presented before US magistrate judge in western district of Pennsylvania; Hill was arrested in Portugal based on the US criminal charges.
DoJ reported that it will seek Hill’s extradition to stand trial in the United States.
Rodriguez, Hill charged with conspiracy to commit money laundering, 18 USC 1956(h).
