April 24, 2024 at 04:58PM
Keonne Rodriguez and William Lonergan Hill have been charged by the U.S. Department of Justice for operating Samourai, a cryptocurrency mixer service, and laundering over $100 million from criminal enterprises. The service was used for processing over $2 billion in illicit funds, along with offering other features like “Ricochet” to conceal transactions. Authorities have seized their domains, and both are facing extradition and criminal charges.
Based on the meeting notes, it appears that Keonne Rodriguez and William Lonergan Hill have been charged by the U.S. Department of Justice for their involvement in the operation of Samourai, a cryptocurrency mixer service. This service facilitated the laundering of more than $100 million from various criminal enterprises and processed over $2 billion in illicit funds.
In addition to offering crypto mixing services, Samourai provided a service called “Ricochet,” which allowed users to send cryptocurrency through unnecessary intermediate transactions to evade law enforcement and crypto exchange tracking efforts.
The indictment alleges that the founders earned around $4.5 million in fees from Whirlpool and Ricochet transactions, and that over 80,000 BTC has passed through Samourai’s services. The Samourai Wallet mobile application was downloaded over 100,000 times, enabling users to store private keys for BTC addresses and engage in anonymous financial transactions.
Icelandic law enforcement has seized Samourai’s domains and web servers, and the Google Play Store removed the mobile app following a seizure warrant. Rodriguez has been taken into custody and will appear before a U.S. Magistrate Judge in the Western District of Pennsylvania, while Hill was arrested in Portugal with the U.S. government planning to request his extradition for trial.
They both face charges of conspiracy for money laundering and operating an unlicensed money-transmitting business, with potential maximum sentences of 20 years and 5 years, respectively.
The U.S. Department of Justice alleges that, despite presenting Samourai as a “privacy” service, the defendants were aware that it was being used as a platform for large-scale money laundering and sanctions evasion. The criminal proceeds laundered through Samourai are said to have originated from various illegal sources, including dark web markets, wire fraud, computer fraud schemes, and other illegal activities.