Samourai Wallet Devs Plead Guilty to Conspiring to Run Unlicensed Money Transmitter

The developers of Bitcoin mixing service Samourai Wallet pleaded guilty to one count each of conspiracy to operate an unlicensed money transmitting business on Wednesday, taking a plea deal that drastically cut their potential prison time for their role in creating a privacy tool prosecutors say was used to launder more than $100 million in dirty money.

In back-to-back hearings in front of U.S. District Judge Denise Cote of the Southern District of New York (SDNY) on Wednesday, both Keonne Rodriguez and William “Bill” Lonergan Hill changed their pleas. The pair were initially charged with one count each of conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business, to which they’d both pleaded not guilty.

Their plea deal with the government struck the more serious money-laundering charge, which carries a maximum sentence of 20 years in prison, in exchange for pleading guilty to the lesser, money-transmitting charge, which carries a maximum sentence of five years in prison. In addition, both Rodriguez and Hill agreed to forfeit just under $238 million combined, with $6.3 million to be paid before their sentencing date in November.

Rodriguez and Hill’s change of plea comes as Tornado Cash developer Roman Storm — who faces similar charges for creating another privacy-focused crypto mixing service — stands trial in the same court. Storm’s trial concluded on Wednesday, mere hours after the Samourai Wallet developers pleaded guilty, and the jury is currently deliberating.

The government’s offer of a plea deal to the Samourai Wallet developers came as Storm’s trial was still ongoing, a source familiar with the matter told CoinDesk.

Until the pair are sentenced later this year, Cote required them to remain on house arrest, and ordered Hill — a resident of Portugal — to return to New York to serve the remainder of his house arrest closer to court, Bitcoin Magazine reported.