The creators of Samourai Wallet, identified as Keonne Rodriguez and William Lonergan Hill, have been charged by federal authorities with conspiring to launder money and running an unregistered money transfer service.
The Department of Justice reported that approximately $2 billion worth of illicit transactions passed through their cryptocurrency tumbler, leading to multiple money laundering schemes. Notably, $100 million of these funds originated from black market sales on the dark web.
Rodriguez, Samourai’s CEO, was arrested in Pennsylvania on charges including money laundering conspiracy, which could result in a 20-year prison term. Simultaneously, Hill, the CTO, was apprehended in Portugal for similar offenses, including operating an unlicensed money transmitting business, punishable by up to five years in prison.
Details of the Samourai Wallet
Based on the unsealed indictment presented in Manhattan federal court today, Rodriguez and Hill are accused of creating Samourai Wallet starting in 2015. This is a claimed cryptocurrency transaction enhancement service that offers increased privacy.
Despite the DOJ’s contention, Whirlpool and Ricochet, two services provided by them, allegedly functioned as complex money laundering schemes. Transactions facilitated through these services were believed to mask the ill-gotten origins of funds.
For quite some time, over 80,000 Bitcoins have been processed through these platforms, resulting in approximately $4.5 million in fees. Allegedly, these services were used for illicit activities like money laundering from black marketplaces such as Silk Road and Hydra Market, along with other deceitful schemes.
Legal Proceedings and Law Enforcement Comments
Damian Williams, the U.S. Attorney, emphasized the gravity of the accusations against Samourai, stating it served as a hideout for criminals to conduct extensive money laundering and circumvent sanctions. The indictment reveals Rodriguez and Hill’s role in advertising Samourai for this illegal activity, as shown in various communications such as tweets and private messages.
Different law enforcement teams, including the IRS Criminal Investigation and the FBI, have expressed gratitude for the collaboration among various jurisdictions in making arrests. The IRS specifically commended the large amounts of money that transited through Samourai without proper oversight, emphasizing the non-compliance with regulatory requirements by its operators.
The DOJ’s case against Samourai Wallet is a significant step in their broader effort to curb illicit activities in the cryptocurrency world. Previously, they have gone after other crypto mixing services with similar intentions. This arrest is a significant move in regulating crypto platforms and ensuring they adhere to anti-money laundering laws, preventing them from being used for financial crimes. Additionally, the DOJ has seized Samurai’s website and mobile app as part of their investigation.
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2024-04-25 01:15