In a major improvement, Keonne Rodriguez and William Lonergan Hill, founders and CEO of the privacy-focused Bitcoin pockets and mixer, Samourai Pockets, have been arrested and charged with cash laundering and working an unlicensed cash transmitting enterprise. The U.S. Division of Justice (DOJ), Southern District of New York, introduced these costs at this time following an intensive investigation into their actions.
JUST IN: 🇺🇸 US DEPARTMENT OF JUSTICE ARRESTS POPULAR #BITCOIN MIXER SAMOURAI WALLET FOUNDERS AND CEO, CHARGED WITH MONEY LAUNDERING pic.twitter.com/8qyMBGRBjL
— Bitcoin Journal (@BitcoinMagazine) April 24, 2024
The costs stem from allegations that Rodriguez and Hill, by way of their firm Samourai Pockets, facilitated over $2 billion in illegal transactions and allegedly laundered greater than $100 million in prison proceeds. This exercise primarily concerned transactions from unlawful darkish net markets, in addition to schemes to defraud decentralized finance protocols, the DOJ said. The defendants are accused by the DOJ of growing, advertising and marketing, and working a bitcoin and cryptocurrency mixer that offered a platform for criminals to have interaction in large-scale cash laundering.
“$2 billion in transactions with an unlicensed cash transmitter means $2 billion flowed with none oversight, from whomever to wherever. Due to the corporate’s disregard for regulation, it’s alleged that Samourai Pockets laundered greater than $100 million in prison proceeds,” said IRS-CI Particular Agent in Cost Thomas Fattorusso. “Particular Brokers with IRS:CI New York and IRS:CI LA’s Cyber items labored with our federal and worldwide legislation enforcement companions to not solely arrest the founders and CEO, however to additionally seize their area. Samourai Pockets is now closed for enterprise.”
The coordinated effort by legislation enforcement companies led to the arrests of Rodriguez and Hill. Rodriguez was apprehended within the Western District of Pennsylvania, whereas Hill was arrested in Portugal based mostly on the U.S. prison costs. The USA plans to hunt Hill’s extradition to face trial within the nation.
“As alleged, Keonne Rodriguez and William Lonergan Hill are accountable for growing, advertising and marketing, and working Samourai, a cryptocurrency mixing service that executed over $2 billion in illegal transactions and served as a haven for criminals to have interaction in large-scale cash laundering,” stated U.S. Lawyer Damian Williams. “Rodriguez and Hill allegedly knowingly facilitated the laundering of over $100 million of prison proceeds from the Silk Highway, Hydra Market, and a number of different laptop hacking and fraud campaigns. Along with our legislation enforcement companions, we are going to proceed to relentlessly pursue and dismantle prison organizations that use cryptocurrency to cover illicit conduct.”
Moreover, in collaboration with authorities in Iceland, Samourai’s net servers and area have been seized, together with a seizure warrant served on the Google Play Retailer for the Samourai Pockets cellular utility. This motion ensures that the appliance is not accessible for obtain in the USA.
FBI Assistant Director in Cost James Smith concluded: “Risk actors make the most of expertise to evade legislation enforcement detection and create environments conducive to prison exercise. For nearly 10 years, Keonne Rodriguez and William Hill allegedly operated a cellular cryptocurrency mixing platform which offered different criminals a digital haven for the clandestine alternate of illicit funds, the facilitation of greater than $2 billion in unlawful transactions, and $100 million in darkish net cash laundering. The FBI is dedicated to exposing covert monetary schemes and guaranteeing nobody can cover behind a display screen to perpetuate monetary wrongdoing.”
