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Authorities Collaborate to Take Down Samourai Wallet
On April 24, international authorities joined forces to dismantle Samourai Wallet, a privacy-focused cryptocurrency wallet, and apprehend its two founders following criminal charges filed by the US Department of Justice (DOJ). Allegations of aiding money laundering led to the shutdown of the renowned privacy wallet and the subsequent arrests.
The seizure notice displayed on Samourai’s website indicates the involvement of Icelandic law enforcement, Portugal police, IRS, DOJ, FBI, and Europol in seizing the project’s web servers and domain. A designated agent confirmed the project’s termination, stating that it is “now closed for business.”
Authorities also issued a seizure warrant for the mobile app available on Google Play, rendering it unavailable for download in the US. Samourai Wallet, known for its privacy-centric features, had previously been downloaded over 100,000 times.
Founders Facing Charges
The DOJ leveled charges against Keonne Rodriguez and William Lonergan Hill, the co-founders, for alleged involvement in money laundering and operating an unlicensed money-transmitting business. The duo purportedly managed and promoted Samourai Wallet, offering a crypto mixer within the platform that handled illegal Bitcoin transactions worth over $2 billion. Moreover, they are accused of facilitating money laundering transactions exceeding $100 million on dark web markets.
Samourai Wallet featured two primary privacy tools — Whirlpool, a coin mixer, and Ricochet, a “hopping” function. The operators reportedly earned substantial fees totaling $3.4 million and $1.1 million from each service over an extended period.
Rodriguez was arrested by US FBI agents, while Hill was detained in Portugal and may face extradition to the US.
Allegations of Illegal Activities
Law enforcement asserted that the features integrated into Samourai Wallet were intentionally designed to aid criminal activities and attracted illegal users. Statements from the founders and official project accounts on social media platforms were included in the DOJ’s case.
Rodriguez’s invitation to sanction Russian oligarchs to utilize the service and Hill’s remarks indicating indifference to Europol’s allegations were highlighted. The operators reportedly acknowledged the wallet’s application in dark web markets, with Hill emphasizing a focus on the “black/grey circular economy.”
Marketing materials for Samourai Wallet also indicated a target audience of “dark/grey market participants” and acknowledged the platform’s use in restricted markets and illicit activities.
Past Enforcement Actions
The DOJ has previously taken legal action against operators of several other coin mixers on charges related to money laundering. Cases against individuals linked to Tornado Cash, with Roman Sterlingov already convicted for involvement with Bitcoin Fog, ChipMixer, and Helix are ongoing.
Additionally, the US Department of the Treasury has imposed sanctions on specific coin mixers, including Tornado Cash and associated crypto addresses.
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