Samourai Wallet Founder Sentenced for 5 Years in Crypto Laundering Case

A federal judge has sentenced Samourai Wallet Co-Founder, Keonne Rodriguez, to five years of prison for operating an illegal crypto-mixing service that handled more than $200 million in criminal proceeds. According to court records from the Southern District of New York, the 37-year-old developer has also been ordered to pay $250,000 and surrender to federal custody on December 19.

After Rodriguez’s confession regarding his participation in the conspiracy to operate an unauthorized money-transferring business, Judge Denise Cote handed down the sentence. The judge described it as a major crime and added that the sentence would be a part of an overall strategy aimed at preventing unrelenting criminals from making use of the tempting crypto systems to commit different offenses.

The hearing witness Cote voiced that she would regard Rodri­guez’s letter to the court as a factor that could hurt the case, stressing that it did not indicate the defendant's awareness of his crime at all. Rodriguez expressed through his writing that he was trying to secure the privacy of the financial transactions; however, the judge countered that the provision had turned into a place of refuge for the criminals who were using the virtual currency to conceal their gains.

Judge Says Privacy Claims Masked Criminal Purpose

Cote told the court that Rodriguez’s conduct amounted to deliberate, antisocial behavior. She said his statement of purpose did not reflect the reality of what Samourai Wallet enabled.

“Everyone values financial privacy,” she said, “but that is not what this was about.” The judge added that Rodriguez’s letter overlooked the harm caused to victims of fraud, drug trafficking, and cybercrime linked to the platform.

They said the plan showed premeditation and awareness. “He encouraged hackers, sanctions evaders, and other criminals to use his tool,” prosecutors told the court. They argued that his letter offered no sign of remorse or recognition of the damage caused.

Federal Case Exposes Dark Web Money Network

Federal prosecutors stated that Rodriguez and co-developer William Lonergan Hill ran Samourai Wallet as an unlicensed service, facilitating transactions for phishing operations, darknet marketplaces, and DeFi-related scams.

An August filing from the US Attorney’s Office said the developers laundered proceeds tied to drug trafficking, cyber intrusions, fraud, and even murder-for-hire schemes. According to court documents, it also linked transactions to a child exploitation website.

In an October 31 memo, prosecutors urged Judge Cote to impose the harshest sentence available, calling the operation one of the most sophisticated laundering systems in the crypto world.

Rodriguez’s defense attorney, Michael Kim Krouse of Arnold & Porter, argued that his client had taken responsibility. He noted that Rodriguez was the one who forfeited $6.3 million and entered a guilty plea without trial. 

Krouse made a request to the court for a one-year prison term, characterizing Rodriguez as a young dreamer who, along with Samourai Wallet, listened to the story of his family members in Cuba who lost their land due to government confiscation.

Accountability and a Question on Privacy

When allowed to speak, Rodriguez told the judge his letter “wasn’t perfect” but said he wanted to address the court personally. He expressed regret for his actions and offered no challenge to the charges against him.

The sentencing revived a broader question: where does the line between Rodriguez’s financial conviction and his partner’s pending case lie? It marks another step in the government’s tightening grip on crypto platforms accused of enabling illicit finance.

Conclusion:

Keonne Rodriguez's prison sentence of five years is considered a turning point in the regulation of cryptocurrencies. The Samurai Wallet case underlines the fact that digital privacy tools can sometimes become legally problematic when used for washing dirty money, and this reminds the developers of the need to make innovation accountable and compliant.

Read More: US Seeks Five-Year Prison Term for Samourai Wallet Founders