Prosecutors Push for Maximum Sentences in Samourai Wallet Money-Laundering Case

U.S. prosecutors have called for five-year prison terms for Keonne Rodriguez and William Lonergan Hill, the co-founders of Samourai Wallet, accusing them of running a crypto-mixing platform that processed hundreds of millions in criminal funds.

In a sentencing memo filed Friday, prosecutors urged the court to impose 60 months in prison for each man, describing Samourai as a “massive money-laundering service” that operated for nearly a decade. The filing alleges that between 2015 and April 2024, the platform helped conceal roughly $237 million tied to crimes including drug trafficking, fraud, cyberattacks, and even murder-for-hire operations.

Rodriguez, who served as Samourai’s CEO, and Hill, its CTO, both pleaded guilty in July to conspiracy to operate an unlicensed money-transmitting business. The plea followed a 2025 superseding indictment that also included money-laundering charges, later dropped as part of their agreements.

Prosecutors acknowledged that federal guidelines suggest far harsher penalties – up to 17 years – but capped their recommendation at five years, the statutory maximum for the charge.

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The Probation Office proposed 42 months, while defense attorneys for Rodriguez and Hill have requested far lighter sentences: just over one year and time served, respectively.

Rodriguez’s sentencing is set for Nov. 6, with Hill to follow on Nov. 7.

The case underscores a broader U.S. crackdown on privacy-focused crypto tools. In August, Tornado Cash co-founder Roman Storm was convicted on one count of operating an unlicensed money transmitter, while jurors deadlocked on his money-laundering and sanctions charges. He faces up to five years in prison if the conviction stands.

Authorities say both cases reflect growing efforts to curb the use of blockchain privacy technology in concealing illicit activity – a move that continues to divide regulators and the crypto community alike.