In a significant development, the creators of the bitcoin mixing service Samourai Wallet have pleaded guilty to conspiring to run an unlicensed money transmission business. This plea agreement, accepted by U.S.
District Judge Denise Cote, drastically reduces the potential prison sentence for Keonne Rodriguez and William 'Bill' Lonergan Hill, the masterminds behind the service. Initially, they were charged with conspiracy to commit money laundering and operating an unlicensed money transmitting business, but the plea deal has struck off the more severe money-laundering charge.
As a result, they now face a maximum sentence of five years in prison, a significant reduction from the initial 20 years. Furthermore, they have agreed to forfeit approximately $238 million, with $6.3 million to be paid before their sentencing in November. This development comes as Roman Storm, the developer of Tornado Cash, is undergoing a trial for similar charges related to his cryptocurrency mixing service.
The plea deal offered to the Samourai Wallet developers was extended while Storm's trial was still in progress, according to a source familiar with the matter. Until their sentencing, Rodriguez and Hill will remain under house arrest, with Hill required to return to New York to serve his house arrest closer to the court.