U.S. federal prosecutors are urging the court to impose five-year prison terms on Keonne Rodriguez and William Lonergan Hill, the co-founders of the privacy-focused Bitcoin wallet Samourai Wallet. The recommendation appears in a sentencing memorandum filed on October 31, 2025.
The developers were originally arrested in April 2024 and accused of running an unlicensed money-transmitting business and facilitating large-scale money laundering through Samourai’s mixing and transaction-obfuscation tools.
According to the U.S. Department of Justice, the service allegedly enabled the laundering of over $100 million in illicit proceeds tied to darknet drug markets, cybercrime and other illegal activities.
Plea deal reduces charges — but prosecutors push for maximum sentence
Although Rodriguez and Hill initially pleaded not guilty, both later reached a plea agreement in July 2025. Under the deal, prosecutors dropped the money-laundering conspiracy charges and kept only the count related to operating an unlicensed money-transfer business — a lesser but still serious felony.
Despite the narrowed charges, the government is demanding the maximum permissible sentence: 60 months in prison.
The memorandum states:
“For nearly a decade, Rodriguez and Hill operated a major money-laundering service known as Samourai Wallet, which washed millions of dollars in criminal proceeds on behalf of its users.”
Prosecutors claim $237M laundered through Samourai
The filing provides additional details, asserting that between 2015 and April 2024, Samourai Wallet processed roughly $237 million worth of illicit funds, linked to drug trafficking, fraud schemes, hacking incidents and other criminal enterprises.
Prosecutors also argue that Hill was fully aware of the platform’s use by criminals and even promoted its services to hackers and darknet operators.
Defense pushes for reduced sentences
Defense teams for both defendants argue that the proposed punishment is disproportionate.
- Rodriguez’s attorneys asked for 12 months and 1 day in prison.
- Hill’s lawyers requested a sentence equal to time already served, which would result in his release.
Sentencing scheduled for early November
The court is set to issue final sentences on:
- November 6, 2025 — for Keonne Rodriguez
- November 7, 2025 — for William Hill
The case marks one of the most consequential U.S. enforcement actions against privacy-oriented Bitcoin tools, following a broader crackdown on mixers and anonymity services in recent years.
