Samourai Wallet, a bitcoin mixing service charged with conspiracy to commit money laundering and operating an unlicensed money transmitter business

The indictment and arrest of the Samourai Wallet founders, Keonne Rodriguez and William Lonergan Hill, on April 24, 2024, marked a significant event in the history of bitcoin regulation and enforcement. The United States Department of Justice charged the duo with conspiracy to commit money laundering and operating an unlicensed money transmitting business.
 

According to the indictment, Samourai Wallet, a bitcoin mixing service, was involved in executing over $2 billion in unlawful transactions and facilitated more than $100 million in money laundering transactions from illegal dark web markets. The service was alleged to have been used by illicit actors and foreign governments to obscure fund transfers, raising concerns about the use of bitcoin mixing tools for criminal activities.
 

Rodriguez, the CEO, and Hill, the CTO, were accused of developing, marketing, and operating the mixer, which prosecutors claimed had been used to launder proceeds from various illegal activities, including dark web marketplaces like Silk Road and Hydra Market. The indictment detailed that the pair collected approximately $4.5 million in fees for their services, with different features incurring different pool fees.
 

The arrests were coordinated with international law enforcement authorities, leading to the seizure of Samourai Wallet’s web servers and domain, as well as the issuance of a seizure warrant for the mobile application on the Google Play Store. This action effectively removed the application from being downloadable in the United States.