In a major turn for the crypto privacy ecosystem, the Samourai Wallet Founders have officially entered guilty pleas in a federal case brought by the U.S. Department of Justice. According to court documents filed on July 29, 2025, co-founders Keonne Rodriguez and William Hill admitted to conspiracy charges related to operating an unlicensed money transmitting business and facilitating money laundering through their privacy-focused Bitcoin wallet.
The Samourai Wallet Founders had previously pleaded not guilty but changed their stance following mounting legal pressure and the release of internal communications cited in the indictment.
Government Crackdown Intensifies
According to reported filings from the Southern District of New York, the Department of Justice accused the pair of knowingly designing Samourai Wallet to facilitate illicit transactions, including mixing services like “Whirlpool” and transaction obfuscation features such as “Ricochet.”
Document on behalf of Keonne Rodriguez reflecting his change in plea. Source: CourtListener
These tools, while popular among privacy advocates, were also reportedly used to launder over $100 million in criminal proceeds, including ransomware and darknet marketplace revenues. Prosecutors claimed the Samourai Wallet Founders had full knowledge of these activities and marketed their services with this utility in mind.
A Blow to Privacy Tools or a Wake-Up Call?
This case is already being framed as a watershed moment in the regulatory battle over crypto privacy. The guilty plea follows similar enforcement actions against Tornado Cash and other anonymity-focused services.
However, advocates argue that targeting developers of open-source privacy tools sets a dangerous precedent. “Privacy is not a crime,” one X (formerly Twitter) user posted in support of the founders, linking to the official FreeRomanStorm.com site—another case involving developers targeted for enabling anonymous crypto use.
While the DOJ asserts that the Samourai Wallet ecosystem was designed for criminal concealment, many in the community see this as an aggressive overreach against privacy in financial software.
What Happens to Samourai Wallet Now?
Following the founders’ arrest in April 2024, Samourai Wallet services were disabled, and its infrastructure was seized by law enforcement agencies. Now, with the Samourai Wallet Founders pleading guilty, the likelihood of the service returning is virtually zero.
According to the unsealed plea agreement published via CourtListener, sentencing is expected to occur later this year, and prosecutors may seek multi-year prison terms. Rodriguez and Hill are also facing financial penalties and possible asset forfeiture.
Broader Implications for Developers
This development will likely send shockwaves through the open-source and crypto dev communities. As regulators ramp up enforcement against tools viewed as facilitating anonymous or pseudonymous crypto activity, developers may begin to self-censor or reconsider privacy-enhancing features.
The Electronic Frontier Foundation and other digital rights groups have long argued that prosecuting software creators for how users deploy their tools endangers innovation and open development. However, regulators appear increasingly focused on accountability at the developer level, especially when monetization or promotion is involved.
Final Thoughts: What This Means for Samourai Wallet Founders and Crypto Privacy
The guilty pleas of the Samourai Wallet Founders mark another major escalation in the global crackdown on crypto privacy infrastructure. While some view this as necessary enforcement against crime-enabling platforms, others warn it may chill development of privacy-preserving financial tools altogether.
As privacy remains a core value for many in the crypto space, the battle between regulators and decentralization advocates is far from over. But with Rodriguez and Hill now likely facing prison, the message from regulators is clear: building tools that mask transactions may come with severe consequences—especially if prosecutors believe there’s intent to facilitate illegal activity.
