The co-founders of Samourai Wallet are expected to plead guilty this week to charges tied to laundering over $100 million through their bitcoin mixing service, in a case that parallels the high-profile Tornado Cash trial now nearing its end.
Court documents filed Tuesday show that Keonne Rodriguez and William Lonergan Hill will change their not-guilty pleas during separate hearings on Wednesday in Manhattan federal court. Both men were charged in April with conspiracy to commit money laundering and operating an unlicensed money-transmitting business — offenses that carry a maximum sentence of 25 years.
Their decision comes just as jurors prepare to deliberate in the trial of Tornado Cash developer Roman Storm, who faces similar charges in the same courthouse. Storm, along with co-developer Roman Semenov — still at large — is also accused of violating U.S. sanctions. Storm’s defense wrapped Tuesday, with closing arguments expected Wednesday.
It’s unclear what prompted the Samourai Wallet founders to reverse course. Their attorneys haven’t commented on the development.
Rodriguez and Hill had tried multiple times to have the case dismissed. In one instance, their legal team pointed to a Justice Department memo circulated earlier this year, stating that the department would no longer pursue criminal cases against crypto companies based solely on alleged regulatory violations or the actions of users. Prosecutors considered dropping the case but ultimately chose to proceed.
The defense also raised concerns over withheld evidence. Internal discussions at the Financial Crimes Enforcement Network (FinCEN) reportedly questioned whether Samourai Wallet met the legal definition of a money transmitter — a point the defense argued undermined the charges. Prosecutors countered that such internal views weren’t relevant under legal disclosure rules.
In May, Storm’s legal team also argued that prosecutors didn’t disclose communications with FinCEN showing that non-custodial crypto mixers do not fall under the legal definition of a money transmitting business, a key element in the government’s case.
The court previously found that the U.S. Treasury’s Office of Foreign Assets Control (OFAC) overstepped its authority by sanctioning Tornado Cash’s immutable smart contracts, which cannot be controlled or altered by any individual or entity.
The defense claims that FinCEN made its position clear as early as 2023, and that prosecutors were aware of this when they charged Storm and other crypto developers, including those behind Samourai Wallet.
