The founders and CEO of a cryptocurrency mixing service have been arrested and charged with money laundering and unlicensed money transfer. Keonne Rodriguez and William Lonergan Hill are accused of operating Samourai Wallet, an unlicensed money transfer business that allegedly processed more than $2 billion in illegal transactions and laundered more than $100 million in proceeds of crime.
U.S. Attorney Damian Williams said:
“Rodriguez and Hill are responsible for developing, marketing and operating Samourai, a cryptocurrency mixing service that processed more than $2 billion in illicit transactions and served as a haven for criminals to engage in large-scale money laundering activities.
“These individuals knowingly facilitated the laundering of over $100 million in proceeds of crime from Silk Road, Hydra Market, and a number of other hacking and fraud campaigns.”
IRS-CI Special Agent in Charge Thomas Fattorusso added:
“A $2 billion transaction with an unlicensed money transmitter means $2 billion flows from whoever to where, without any oversight. Samourai Wallet is alleged to have laundered more than $100 million in criminal proceeds because the company ignored regulations.”
FBI Deputy Director in Charge James Smith emphasized the role of technology in facilitating such illegal activities. Smith said:
“Threat actors use technology to evade detection by law enforcement and create environments conducive to criminal activity. Over the course of nearly 10 years, Rodriguez and Hill engaged in the secret exchange of illicit funds to other criminals, facilitated more than $2 billion in illicit transactions, and $100 million in dark web money. They allegedly operate a mobile cryptocurrency mixing platform that provides a virtual haven for laundering.”
Authorities not only arrested the founders and CEO, but also seized the domain names, effectively shutting down Samourai Wallet.
*This is not investment advice.