The creators of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, are currently accused by federal authorities of conspiring to launder money. This action is consistent with the U.S. government’s persistent efforts to criminally charge crypto tools that facilitate the blending of funds.
Additionally, they believe this action is orchestrated by unlawful groups and external parties to hide money transfers. On the other hand, the DoJ’s decision to indict Samourli Wallet’s creators has sparked controversy. Ki Young Ju, CEO of CryptoQuant, speaks up in defense of Samourai Wallet and its founders.
CryptoQuant CEO Backs Samourai Wallet
In a recent post on X, the CEO of CryptoQuant expressed that some pioneers in the field of Bitcoin privacy technology have been arrested by the US Department of Justice. He emphasized that the practice of crypto mixing, which improves privacy, is not illegal on its own. The CEO added that preserving privacy is essential to Bitcoin, and mixing, a method even used by crypto exchanges to protect user privacy, is not a criminal act.
Additionally, Ju pointed out that whether a feature is considered legal or illegal hinges on how it’s employed and the underlying motivation. He drew an analogy between the Samourai Wallet case and the use of a knife: just as a knife can be used lawfully or unlawfully, the intent behind its usage determines its legality. Ju emphasized, “Instead of penalizing the inventor, we should focus on the user.”
In the announcement, it came to light that Rodriguez and Hill are suspected of creating, advertising, and managing a mixing service that allowed more than $100 million in money laundering deals from underground markets on the dark web. Reportedly, Samourai Wallet has been involved in approximately $2 billion worth of illicit transactions since its establishment in 2015.
Other Charges Pressed On Keonne Rodriguez & William Lonergan Hill
Additionally, the prosecution alleged that the pair earned approximately $4.5 million in commissions for their mixing work on Samourai Wallet. Their services came with distinct features and varying fees for pool transactions. They are accused of conspiring to launder money and operating an unlicensed money transferring business without authorization. The penalties for these offenses could result in imprisonment for up to 20 years for money laundering and five years for running an unauthorized money transfer business.
Rodriguez has been captured and will likely be charged in Pennsylvania. Simultaneously, Hill, who is the CTO of Samourai Wallet, has been taken into custody in Portugal and could be sent to the US for trial. Furthermore, officials have seized the Samourai Wallet website, which is located in Iceland, and obtained a warrant to take down its mobile app from the Google Play Store.
Based on information from the Department of Justice (DOJ), Rodriguez and Hill are accused of urging users to clean dirty money by utilizing their mixer service. Proof includes tweets and private messages as evidence. The mobile application has gained popularity with over 100,000 downloads.
According to reports, the founders prioritized creating a platform resistant to censorship and promoting a circular economy in the black and grey markets. They did not aim for widespread use, instead focusing on these markets, especially during and after the COVID-19 pandemic.
They allegedly tried to attract investors by approaching individuals in the “underground/shadowy financial markets,” using promotional materials labeled “For Limited Distribution.” This strategy also included online gambling and asset protection as their primary customer base.
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2024-04-25 12:27