On Christmas Eve, Keonne Rodriguez, co-founder of Samourai Wallet, a Bitcoin privacy wallet, reflected on his first day in federal prison. Rodriguez began serving his 5-year sentence after being convicted of operating an unlicensed money transmitting business.
Samourai Wallet, co-founded in 2015 by Rodriguez and William Lonergan Hill, offered features like Whirlpool and Ricochet, designed to enhance transaction privacy on the Bitcoin network. Whirlpool mixed bitcoin among users, while Ricochet added multiple "hops" to make tracing transactions more difficult. While praised by privacy advocates for promoting censorship resistance and user sovereignty, the wallet drew scrutiny from law enforcement, who alleged it facilitated money laundering.
In April 2024, the U.S. Department of Justice (DOJ) arrested Rodriguez and Hill, alleging that Samourai Wallet enabled over $237 million in illegal transactions. Prosecutors claimed the platform was used to launder criminal proceeds from drug trafficking, darknet marketplaces, cyber intrusions, and other illicit activities. The DOJ also stated that over $2 billion in Bitcoin passed through Samourai Wallet's services. In July 2025, Rodriguez and Hill pleaded guilty to operating an unlicensed money transmitting business. Rodriguez was sentenced to five years in prison and Hill received a four-year sentence. Both were also fined $250,000 and ordered to forfeit over $6.3 million.
The case has ignited debate within the cryptocurrency community regarding financial privacy, open-source development, and the liability of developers for how their tools are used. Some argue that prosecuting developers for creating privacy-enhancing tools stifles innovation and infringes on the principle of "code as speech". Others maintain that such tools can be misused for illicit purposes and that developers should be held accountable when their platforms facilitate criminal activity.
Before reporting to Morgantown Federal Prison, Rodriguez expressed hope that President Trump would consider his case and issue a pardon, viewing the prosecution as an attack on freedom and innovation. Trump had stated he would "look at" pardoning Rodriguez. However, Rodriguez expressed doubt he would receive a pardon, citing a lack of resources to influence the decision compared to others who have received pardons. The crypto community has rallied around Rodriguez, with many calling for his pardon and contributing to online campaigns to raise awareness.
The sentencing of Rodriguez and Hill follows a broader crackdown on cryptocurrency mixers by international law enforcement. Other platforms, such as Tornado Cash, Blender, and Sinbad, have also faced legal action. These actions highlight the ongoing tension between the desire for privacy in cryptocurrency transactions and the need to prevent illicit activities.
