Two key figures behind Samourai Wallet, its co-founders Keonne Rodriguez and William Lonergan Hill, have been taken into custody by the US law enforcement on allegations of running an unregistered money transfer service and conspiring to launder funds.
The pair is reportedly involved in cleaning up more than $100 million in ill-gotten gains, some of which came from the Silk Road and Hydra Market transactions.
Samourai Wallet’s Alleged Criminal Activities
An intensive probe conducted by the United States Department of Justice (DOJ), in conjunction with the Internal Revenue Service-Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI), resulted in the apprehension of Rodriguez and Hill.
An unsealed indictment from the Department of Justice accuses Samourai Wallet, a cryptocurrency tumbling platform, of facilitating over $2 billion in illicit transactions, raking in massive fees worth millions in return.
Based on the Department of Justice’s announcement, Samourai Wallet offered several anonymizing features that drew in criminals looking to conduct extensive money laundering and circumvent financial sanctions.
‘Whirlpool’ And ‘Ricochet’ Features Under Scrutiny
According to reports, Samourai Wallet’s cryptocurrency tumbler called “Whirlpool” is believed to have helped users exchange cryptocurrencies amongst themselves in order to make it harder for authorities to track down potentially illicit transactions on the blockchain.
An extra feature in Samourai Wallet is named “Ricochet,” which enables users to include excess intermediary transactions, seemingly concealing the source of cryptocurrency bundles.
Together, these features have handled transactions worth more than 80,000 BTC (approximately $2 billion) since their launch. Fees for Whirlpool transactions in Samourai Wallet amounted to an estimated $3.4 million, while Ricochet transactions generated around $1.1 million in fees, according to the Department of Justice’s disclosure.
In the ongoing legal case, Rodriguez has been taken into custody in the United States and will likely make an appearance before a judge in Pennsylvania’s Western District. Simultaneously, Hill was apprehended in Portugal, with the US planning to request his extradition for trial. Both individuals may face imprisonment for up to five years.
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2024-04-24 23:11