Keonne Rodriguez and William Lonergan Hill, executives of Samourai Wallet, have been indicted for allegedly operating an unlicensed money transmitting business and orchestrating a money laundering conspiracy spanning from 2015 to February 2024. US prosecutors unveiled the charges, accusing the duo of utilizing Samourai to process $2 billion in anonymous financial transactions, providing a platform for criminals to engage in large scale money laundering and sanctions evasion.
The indictment alleges that Samourai facilitated the laundering of funds from illegal darkweb marketplaces such as Silk Road and Hydra Market, as well as various computer fraud schemes. Rodriguez, the company’s CEO, was arrested in western Pennsylvania, while Hill, the CTO, was apprehended in Portugal. The charges carry a maximum penalty of 25 years in prison, marking a significant crackdown on crypto mixers amid global regulatory efforts to combat illicit financial activities facilitated by digital currencies.
Samourai Wallet, marketed as a privacy program with over 100,000 downloads, allegedly generated millions in fees from its “Whirlpool” service, which coordinated crypto exchanges among users, and its “Ricochet” feature, which added extra intermediate transactions to disguise the origin and destination of funds. UK’s National Crime Agency and Europol had previously identified Samourai Wallet as a tool used by criminals for illicit purposes, highlighting the challenges in cryptocurrency tracing posed by decentralized wallets like Samourai. The case underscores the growing scrutiny on cryptocurrency platforms and their executives as authorities worldwide intensify efforts to combat financial crime in the digital age.
SOURCE: YAHOO FINANCE | APRIL 25 2024
