Keonne Rodriguez, the co-founder of Samourai Wallet—a Bitcoin wallet focused on transaction privacy—has been sentenced to the maximum five-year prison term for operating an unlicensed money-transmitting business through the development of Samourai’s crypto mixing services. Rodriguez, together with co-founder William Lonergan Hill, launched Samourai Wallet in 2015 and introduced features like Whirlpool, a coin-mixing protocol designed to enhance Bitcoin transaction anonymity.

U.S. authorities stated that the wallet’s mixing service enabled users to conceal the origins of approximately $2 billion in Bitcoin transactions, with an estimated $100 million linked to illicit activity. The Department of Justice argued that Rodriguez and Hill’s service acted as an unlicensed transmitter and contributed to money laundering by helping users obscure fund movements.

In July 2025, Rodriguez and Hill admitted guilt to charges involving operating an unlicensed business and conspiracy to commit money laundering. Privacy advocates and civil liberties groups have expressed concern that the case sets a precedent that threatens the rights to software development and financial privacy, raising questions about the treatment of open-source technologies by law enforcement.

The sentence, delivered in November 2025, marks a significant moment in the ongoing debate over crypto mixing services, privacy, and regulatory enforcement in the digital asset space.