Samourai Wallet Devs Plea Guilty in High Stakes Crypto Case

A significant development has emerged in the legal saga surrounding Samourai Wallet, as co-founders Keonne Rodriguez and William Lonergan Hill have reportedly changed their pleas to guilty. This shift, revealed by crypto news outlet The Rage on July 29, 2025, marks a potential turning point in a case that has gripped the cryptocurrency community for over a year. The case, centered on charges of conspiracy to commit money laundering and operating an unlicensed money transmitting business, highlights the ongoing clash between U.S. regulators and innovators in the crypto space. With hearings scheduled for July 30, 2025, the crypto world is watching as this courtroom drama appears to near its conclusion.

The Samourai Wallet case has been a lightning rod for debate since Rodriguez and Hill were arrested in April 2024. Prosecutors in the Southern District of New York alleged that the Bitcoin mixing platform facilitated over $2 billion in unlawful transactions, including at least $250 million in laundered criminal proceeds from dark web markets like Silk Road and Hydra Market. Samourai Wallet, known for its privacy-enhancing features such as CoinJoin, allowed users to obfuscate the origins of their Bitcoin transactions, a function that advocates argue is critical for financial privacy. However, authorities have scrutinized the platform for its potential misuse, despite a lack of peer-reviewed evidence directly linking the developers to criminal activity. The case has drawn parallels to other high-profile prosecutions, such as that of Tornado Cash, raising questions about the legal boundaries of non-custodial crypto services.

A Legal Battle Nears Its End

The decision by Rodriguez and Hill to change their pleas to guilty comes after 461 days of legal wrangling, during which the defendants maintained their innocence. Initially pleading not guilty, the co-founders faced significant pressure, with potential penalties of up to 20 years for money laundering and five years for unlicensed money transmission. Court filings indicate that hearings to formalize the plea changes are set for 10:00 and 10:30 a.m. on July 30, 2025, before Judge Denise Cote. While no specific details about the plea agreements have been disclosed, the move suggests that the defendants may have opted to avoid a prolonged trial, possibly influenced by the severe consequences of a guilty verdict or personal circumstances.

The case has not been without controversy. In May 2025, defense attorneys argued that prosecutors withheld critical evidence, citing a consultation with the Financial Crimes Enforcement Network (FinCEN) in August 2023, which indicated that Samourai Wallet did not meet the definition of a money transmitting business under the Bank Secrecy Act. This revelation, raised under the Brady v. Maryland doctrine, fueled claims of prosecutorial overreach and sparked hope among supporters that the case might be dismissed. However, a subsequent superseding indictment in June 2025 escalated the allegations, asserting that Samourai Wallet laundered far more than the initially reported $100 million, further complicating the defense’s position.

The broader crypto community has rallied around Rodriguez and Hill, viewing their prosecution as a test case for the future of privacy-focused technologies. Advocates, including privacy activists and blockchain developers, argue that tools like CoinJoin are essential for protecting user anonymity in an era of increasing surveillance. Critics of the case, including Senators Cynthia Lummis and Ron Wyden, have accused the Department of Justice of overstepping by classifying non-custodial software providers as money transmitters, a stance they claim contradicts FinCEN’s guidance. The guilty plea, if finalized, may temper these debates but is unlikely to resolve the underlying tensions between innovation and regulation.

As the hearings approach, the crypto industry braces for the outcome of this pivotal case. The decision by Rodriguez and Hill to plead guilty could set a precedent for how privacy-enhancing tools are treated under U.S. law, potentially chilling and stalling development in the sector. For now, the community awaits further details from the court, as the Samourai Wallet saga moves toward a resolution that could reshape privacy.