U.S. court filings reveal that Keonne Rodriguez and William Lonergan Hill, the co-founders of Samourai Wallet, have decided to enter guilty pleas in connection with federal charges tied to their cryptocurrency mixing service.
Initially arrested and indicted in April 2024, the pair had pleaded not guilty to allegations of operating an unlicensed money-transmitting business and conspiring to launder illicit funds. Prosecutors accused them of facilitating over $2 billion in unlawful transactions, including more than $100 million in laundering through darknet markets like Silk Road.
Up to 25 years in prison
According to court documents filed on Tuesday, scheduled hearings for the next day, that is on July 30, will mark the formal transition from not guilty pleas to guilty pleas. Rodriguez and Hill face up to 20 years for money laundering and an additional 5 years for running an unlicensed money-transmitting business, up to 25 years in prison in total. Their trial in the Southern District of New York is set to commence on November 3, presided over by Judge Denise L. Cote.
Efforts to sway the prosecutor’s case
Earlier efforts to dismiss the case failed. Their defense pointed to a July 2025 DoJ memo by Deputy Attorney General Todd Blanche, which advised abandoning enforcement against crypto mixers for unwitting regulatory violations, a CoinTelegraph report showed.
They also claimed federal prosecutors withheld early FinCEN advice, asserting that Samourai likely didn’t need a transmission license. Prosecutors denied suppression and insisted disclosures were made in compliance with legal requirements.
Interestingly, the plea change from Samourai wallet co-founders comes amid ongoing proceedings against Roman Storm, co-founder of Tornado Cash, a similar cryptocurrency mixing platform, whose trial is also underway in Manhattan. Storms’ case is being closely watched as it will set a precedent for the broader legal landscape surrounding crypto privacy tools.