Samourai Wallet Developer Keonne Rodriguez Sentenced to Five Years for Bitcoin Mixing Scheme

Samourai Wallet developer Keonne Rodriguez has been sentenced to five years in prison for operating an unlicensed bitcoin mixing service accused of laundering over $237 million in illicit funds. The sentencing, delivered by District Judge Denise Cote of the Southern District of New York, marked the maximum penalty for Rodriguez’s guilty plea to conspiracy to operate an unlicensed money transmitting business.

Judge Cote emphasized the need for deterrence, expressing concern over Rodriguez’s lack of remorse in his pre-sentencing letter. She noted that while financial privacy is important, Rodriguez’s actions facilitated criminal enterprises rather than protecting legitimate users. Prosecutors supported this view, highlighting Rodriguez’s detailed escape plan and evidence that Samourai Wallet knowingly enabled hackers, sanctions violators, and darknet criminals.

According to the October 31 sentencing memo, the platform laundered proceeds from activities including drug trafficking, cyber fraud, and child exploitation. Despite Rodriguez’s apology and his attorney Michael Kim Krouseciting his cooperation and forfeiture of $6.3 million, Judge Cote remained unmoved, calling his outlook “morally blinded.”

In addition to prison time, Rodriguez faces three years of probation and a $250,000 fine. The court also ruled that half of his prison earnings and a quarter of his post-release income would go toward repaying the fine.

Rodriguez and co-developer William Lonergan Hill were arrested in April 2024 on charges of money laundering and operating an unlicensed business. They later struck a plea deal reducing the charges. Hill’s sentencing is scheduled for November 19, 2025.

The case underscores the U.S. government’s tightening stance on crypto privacy tools like Samourai Wallet and Tornado Cash, signaling increased regulatory scrutiny over technologies used to obscure digital transactions.