Samourai Wallet Developer Gets 5 Years in Privacy Case

Keonne Rodriguez, cofounder of Bitcoin privacy tool Samourai Wallet, was sentenced to the maximum five years in prison and ordered to pay a $250,000 fine after pleading guilty to conspiracy to commit money laundering and operating an unlicensed money transmitting business. His cofounder, William Lonergan Hill, faces sentencing later this month. The Department of Justice alleged that Samourai Wallet processed more than $2 billion in transactions and facilitated over $100 million in criminal proceeds, including funds linked to hacking, fraud, drug trafficking, and murder-for-hire schemes. Prosecutors argued that the developers intentionally marketed their software to users seeking to conceal illicit activities.

Samourai Wallet was designed as a privacy-first Bitcoin wallet, offering features like Whirlpool and Ricochet to help users mask transaction histories and identities. While the Department of Justice framed these tools as enablers of criminal activity, proponents within the Bitcoin community view them as essential for financial privacy and autonomy. Foundation, a Bitcoin-centric tools developer, commented that ‘open-source developers deserve protection, not persecution,’ highlighting the tension between innovation and regulation.

The Rodriguez case underscores a stark disparity in how justice is administered between cryptocurrency developers and traditional financial institutions. In 2023, banking giant JPMorgan paid $290 million to settle allegations related to sex trafficking—a case described as ‘heinous’—without a single top executive facing jail time. Meanwhile, Rodriguez, a coder behind a non-custodial Bitcoin wallet, received a five-year prison sentence. This contrast has fueled criticism that the legal system disproportionately targets individuals in the crypto space while allowing established financial entities to resolve serious misconduct through financial settlements.

This pattern extends beyond Samourai Wallet. As the Department of Justice continues to pursue cases against privacy technologies and open-source developers, many in the Bitcoin community argue that the prosecutions criminalize not just software, but the principles of financial freedom. The case has become a rallying point for those who believe that coding privacy tools should not be equated with facilitating crime, especially when comparable—or more severe—infractions by traditional banks result in monetary penalties rather than incarceration.

Amid the crackdown on privacy tools, President Donald Trump has taken steps to pardon high-profile figures in the cryptocurrency world. This year, he granted a full pardon to Ross Ulbricht, founder of the dark web marketplace Silk Road, who walked free after a decade in prison. Trump also pardoned Binance founder Changpeng ‘CZ’ Zhao, who had served time on federal money laundering charges. These actions, coupled with executive orders like the debanking order to end Operation Choke Point 2.0, signal a pro-crypto shift from the White House.

However, the continued prosecution of Samourai Wallet developers reveals a complex and inconsistent regulatory landscape. Bitcoin advocates, including commentator Max Keiser, are now urging Trump to issue a blanket pardon for Rodriguez and Hill. They frame the case as a critical stand for open-source financial privacy against government overreach and surveillance. The push for a Samourai pardon reflects a broader movement to defend the rights of developers and uphold the cypherpunk ideals of financial sovereignty.

The sentencing of Keonne Rodriguez represents a chilling milestone in the ongoing conflict between privacy-enhancing technologies and regulatory enforcement. As Wall Street banks settle massive cases without admitting guilt or facing imprisonment, the prosecution of Bitcoin developers sets a precedent that could deter innovation in open-source financial tools. The case raises fundamental questions about where the line between code and crime should be drawn, and whether developers can be held liable for how their software is used by others.

For the cryptocurrency industry, the Samourai Wallet prosecution is a litmus test for financial privacy and developer rights. With the 2024 election cycle amplifying debates over crypto regulation, the outcome of this case—and the campaign for a pardon—could shape the legal boundaries for years to come. As one Bitcoiner noted, the fight for justice in this arena is becoming the industry’s loudest call yet, emphasizing that the principles of financial freedom and privacy must be protected from escalating persecution.