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Samourai Wallet Founder Receives Four-Year Prison Sentence

Samourai Wallet Founder Receives Four-Year Prison Sentence
Crypto Crime • Regulation

Samourai Wallet Founder Receives Four-Year Prison Sentence

A major U.S. enforcement action targeting crypto privacy tools
Samourai Wallet founder sentenced to four years in prison

William Lonergan Hill, co-founder and former CTO of the privacy-focused Bitcoin application Samourai Wallet, has been sentenced to four years in U.S. federal prison after pleading guilty to operating an unlicensed money-transmitting business.

1. What Led to the Four-Year Sentence

Hill admitted that Samourai Wallet processed more than $237 million in illicit transactions tied to darknet markets, drug trafficking, fraud, and international cybercrime operations.

  • The platform’s “Whirlpool” mixer and “Ricochet” tools were key evidence.
  • Prosecutors argued the founders knowingly enabled criminal money flows.
  • Hill pleaded guilty earlier this year, leading to a reduced sentence.

2. What Prosecutors Said

U.S. authorities stated that Samourai Wallet “operated as a large-scale criminal money laundering platform under the guise of privacy.” Officials stressed that even non-custodial crypto tools can fall under money-transmitter laws when designed to obscure financial trails.

3. Impact on the Crypto Privacy Ecosystem

The case is widely seen as a major warning shot to developers of privacy-enhancing crypto services. This includes mixers, coinjoin systems, and anonymization tools.

  • Regulators are increasing pressure on privacy wallets.
  • Developers may face liability even without directly handling customer funds.
  • The case could influence future wallet design and compliance frameworks.

4. What Happens Next for Samourai Wallet?

The platform’s servers were seized earlier this year, and the app was removed from both Google Play and the project’s main website. Legal experts expect continued investigation into associated users and partners.

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This article is for informational purposes only and is not financial or legal advice.

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