The co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, found themselves under the scrutiny of US authorities. The charges levied against them include operating an unlicensed money-transmitting business as well as engaging in a conspiracy to commit money laundering.

The gravity of the situation is underscored by revelations that the duo purportedly facilitated the laundering of over $100 million in criminal proceeds, with funds reportedly originating from the Silk Road and Hydra Market. This has sparked a far-reaching investigation helmed by the United States Department of Justice (DOJ), in collaboration with the Internal Revenue Service-Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI).

Unveiled in the indictment unsealed by the DOJ are allegations that Samourai Wallet, a cryptocurrency mixing service, conducted over $2 billion in purportedly unlawful transactions, raking in substantial fees in the process. It is further contended that the service knowingly attracted criminals seeking to engage in large-scale money laundering and sanctions evasion through the use of anonymous financial transactions.

Of particular concern are the features offered by Samourai Wallet, notably “Whirlpool” and “Ricochet.” The former purportedly facilitated the coordination of cryptocurrency exchanges between users in a bid to obfuscate the tracing of criminal proceeds on the blockchain. Meanwhile, the latter allowed users to add superfluous intermediate transactions to allegedly obfuscate the origin of cryptocurrency batches. These features have collectively processed a staggering 80,000 BTC, equivalent to over $2 billion, with the wallet allegedly accruing substantial fees of $3.4 million for Whirlpool transactions and $1.1 million for Ricochet transactions.

Amidst these proceedings, Rodriguez has been arrested and is anticipated to appear before a US Judge in the Western District of Pennsylvania, while Hill was apprehended in Portugal. The United States intends to seek his extradition for trial. If found guilty, both individuals could face up to 5 years’ imprisonment.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.