Breaking news from the world of cryptocurrency: the founders and CEO of the privacy-focused Bitcoin wallet and mixer, Samourai Wallet, have been arrested and charged with money laundering and operating an unlicensed money transmitting business. This shocking development comes after an extensive investigation by the U.S. Department of Justice (DOJ), Southern District of New York.
JUST IN: 🇺🇸 US DEPARTMENT OF JUSTICE ARRESTS POPULAR #BITCOIN MIXER SAMOURAI WALLET FOUNDERS AND CEO, CHARGED WITH MONEY LAUNDERING pic.com/8qyMBGRBjL
— Bitcoin Magazine (@BitcoinMagazine) April 24, 2024
The allegations against Rodriguez and Hill are serious, with claims that they facilitated billions of dollars in illicit transactions and laundered millions in criminal proceeds through Samourai Wallet. The DOJ has stated that their activities were primarily linked to illegal dark web markets and fraudulent schemes in the decentralized finance sector.
IRS-CI Special Agent in Charge Thomas Fattorusso highlighted the magnitude of the issue, stating, “$2 billion in transactions without oversight is a significant concern. Samourai Wallet’s actions allegedly led to the laundering of more than $100 million in criminal proceeds, as the company disregarded regulations and provided a platform for large-scale money laundering by criminals.”
The arrests were the result of a coordinated effort by law enforcement agencies, leading to Rodriguez’s apprehension in Pennsylvania and Hill’s arrest in Portugal. The U.S. plans to extradite Hill for trial in the United States.
U.S. Attorney Damian Williams emphasized the seriousness of the allegations, stating, “Rodriguez and Hill knowingly facilitated the laundering of over $100 million from criminal activities, including the Silk Road and Hydra Market. We are committed to dismantling criminal organizations that exploit cryptocurrencies for illicit purposes.”
Additionally, authorities in Iceland collaborated to seize Samourai’s web servers and domain, ensuring that the application is no longer available for download in the U.S. FBI Assistant Director James Smith reiterated the commitment to fighting financial crimes, stating, “Rodriguez and Hill allegedly operated a platform that facilitated billions in illegal transactions and dark web money laundering, but we are dedicated to exposing and preventing such criminal activities.”
