Keonne Rodriguez, co-founder of Samourai Wallet, pleaded not guilty in a Manhattan court on Monday, after being arrested along with fellow co-founder William Lonergan Hill. The charges against them include conspiracy to commit money laundering and operating an unlicensed money transmitting business, which carry potential sentences of up to 20 years and five years, respectively.
Prosecutors claim that the Samourai Wallet app facilitated over $100 million in money laundering transactions from illegal sources on the dark web between 2015 and the recent seizure of the company’s servers. They also allege that the app was involved in approximately $2 billion in unlawful transactions.
The arrests of Rodriguez and Hill coincide with a broader government crackdown on privacy-focused cryptocurrency services, exemplified by the pending case against Tornado Cash developer Roman Storm. These actions have sparked concern within the crypto industry about potential efforts to criminalise financial privacy.
Rodriguez was initially apprehended at his Pennsylvania residence on April 24 and released on a $25,000 bond. Subsequently, he was granted release on a $1 million bond by Judge Barbara Moses in Manhattan, with conditions including home confinement and electronic monitoring. His next court appearance is scheduled for May 14 before District Judge Richard Berman.