Co-founders of Samourai Wallet Arrested on AML and Licensing Charges
The United States Justice Department (DOJ) and other agencies have arrested the co-founders of Samourai Wallet, a cryptocurrency mixer, on charges of money laundering. CEO Keonne Rodriguez and chief technology officer William Hill are facing charges including conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. If convicted, they could face up to 20 years in prison. Rodriguez was arrested in Pennsylvania, while Hill was arrested in Portugal.
According to a statement from the U.S. Attorney’s Office of the Southern District of New York, the U.S. will seek Hill’s extradition. In addition to the arrests, the company’s servers and domain were seized in Iceland, and a warrant has been issued to stop downloads of the Samourai Wallet app from the Google Play Store. The app has been downloaded over 100,000 times. The U.S. Internal Revenue Service and Federal Bureau of Investigation were also involved in the investigation.
The DOJ’s statement alleges that Samourai Wallet facilitated unlawful and money laundering transactions amounting to over $2 billion from illegal dark web markets such as Silk Road and Hydra Market. The company is also accused of involvement in a web-server intrusion, a spearphishing scheme, and schemes to defraud multiple decentralized finance protocols. Samourai Wallet offered services such as Whirlpool crypto mixing and Ricochet, which created unnecessary transactions to obscure the origins of users’ cryptocurrency. It is estimated that the company made $4.5 million from fees.
The U.S. government has been taking a more aggressive stance towards cryptocurrency mixers. In May 2022, the Treasury Department’s Office of Foreign Asset Control (OFAC) sanctioned Blender.io after the Axie Infinity hack. In October 2022, OFAC added addresses associated with the Tornado Cash mixer to its list of Specially Designated Nationals, effectively prohibiting U.S. residents from using the service. Despite a court challenge, this decision stood. By August 2023, all three co-founders of Tornado Cash were under arrest. In response to the Hamas attack on Israel in October 2023, the Treasury’s Financial Crimes Enforcement Network proposed labeling crypto mixers as a “primary money laundering concern.”
13 thoughts on “Co-founders of Samourai Wallet Arrested on AML and Licensing Charges”
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The U.S. government’s determination to bring these criminals to justice is commendable. Let’s hope this paves the way for a more secure and transparent crypto industry.
The involvement of the U.S. Internal Revenue Service and Federal Bureau of Investigation in the investigation highlights the magnitude of these alleged crimes.
It’s a relief to know that illegal activities in the crypto industry are being tackled head-on. We must continue to support the authorities in their efforts to maintain a safe and transparent ecosystem.
Justice is being served! It’s crucial to hold accountable those who use crypto for illegal purposes and tarnish the reputation of the entire industry. ⚖️🔒💼
These arrests highlight the importance of robust regulations to prevent money laundering and illegal activities in the cryptocurrency space. We must ensure a secure environment for all users.
It’s about time they went after these cryptocurrency mixers. They are enabling illegal activities!
The U.S. government’s efforts to combat money laundering in the crypto industry are commendable. Let’s hope it serves as a deterrent to others involved in such activities.
Another blow to the crypto community. This will only discourage innovation and adoption. 😫
It’s crucial for the authorities to crack down on money laundering in the crypto industry. These arrests show that they are committed to ensuring the legitimacy and integrity of the system.
It’s concerning to think of the amount of money being laundered through crypto platforms like Samourai Wallet. These arrests are a step in the right direction towards a safer industry.
The U.S. Justice Department is sending a strong message by arresting the co-founders of Samourai Wallet. Let this be a warning to others engaging in illicit transactions.
I’m glad the U.S. government is cracking down on crypto mixers involved in illegal activities. It’s crucial for the legitimacy and trustworthiness of the crypto industry.
billion in money laundering? This is a huge deal and these founders deserve to be punished!