<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MTc5Mjk3NzYxMzg3NDIzMzgz/doj-holds-digital-currency-summit-with-government-agencies-and-bitcoin-organizations.jpg” />
In a significant development, Keonne Rodriguez and William Lonergan Hill, founders and CEO of Samourai Wallet, the privacy-focused bitcoin wallet and mixer, have been arrested and charged with money laundering and operating a money transmission business. Unlicensed. The United States Department of Justice (DOJ), Southern District of New York, Announced these charges today after an extensive investigation into his activities.
<blockquote class="twitter-tweet”>
ONLY IN: US DEPARTMENT OF JUSTICE ARRESTS POPULARS twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin MIXER SAMOURAI WALLET FOUNDERS AND CEO ACCUSED OF MONEY LAUNDERING pic.twitter.com/8qyMBGRBjL
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1783220656160530441?ref_src=twsrc%5Etfw”>April 24, 2024
The charges arise from allegations that Rodriguez and Hill, through their company Samourai Wallet, facilitated more than $2 billion in illegal transactions and allegedly laundered more than $100 million in criminal proceeds. This activity primarily involved transactions from illegal dark web markets, as well as schemes to defraud decentralized financial protocols, the Department of Justice stated. The Justice Department charges the defendants with developing, marketing and operating a bitcoin and cryptocurrency mixer that provided a platform for criminals to engage in large-scale money laundering.
“$2 billion in transactions with an unlicensed money transmitter means that $2 billion flowed without any oversight, from anyone to anywhere. Due to the company's disregard for regulation, Samourai Wallet is alleged to have laundered more than $100 million in criminal proceeds,” stated IRS-CI Special Agent in Charge Thomas Fattorusso. “Special agents from IRS:CI New York and IRS:CI LA cyber units worked with our federal and international law enforcement partners to not only arrest the founders and CEO, but also seize their domain. Samourai Wallet is now closed to the public.”
The coordinated effort of law enforcement agencies led to the arrests of Rodriguez and Hill. Rodriguez was detained in the Western District of Pennsylvania, while Hill was arrested in Portugal on U.S. criminal charges. The United States plans to request Hill's extradition so that he can be tried in the country.
“As alleged, Keonne Rodríguez and William Lonergan Hill are responsible for developing, marketing and operating Samourai, a cryptocurrency mixing service that executed more than $2 billion in illegal transactions and served as a haven for criminals to engage in money laundering. of money on a large scale. said U.S. Attorney Damian Williams. “Rodriguez and Hill allegedly knowingly facilitated the laundering of more than $100 million in criminal proceeds from Silk Road, Hydra Market, and a host of other fraud and hacking campaigns. Together with our law enforcement partners, we will continue to relentlessly pursuing and dismantling criminal organizations that use cryptocurrencies to hide illicit conduct.”
Additionally, in collaboration with Icelandic authorities, Samourai's web servers and domain were seized, along with a seizure warrant served on the Google Play Store for the Samourai Wallet mobile app. This action ensures that the app is no longer available for download in the United States.
FBI Assistant Director in Charge James Smith concluded: “Threat actors use technology to evade detection by law enforcement and create environments conducive to criminal activity. For nearly 10 years, Keonne Rodriguez and William Hill allegedly operated a mobile cryptocurrency mixing platform that provided other criminals with a virtual haven for clandestinely exchanging illicit funds, facilitating more than $2 billion in illegal transactions, and 100 millions of dollars in dark web money. washed. “The FBI is committed to exposing covert financial schemes and ensuring that no one can hide behind a screen to perpetuate financial irregularities.”
<script async src="https://platform.twitter.com/widgets.js” charset=”utf-8″>
