Samourai Wallet Founders Arrested on Money Laundering Charges
Key Takeaways
- DOJ arrested the Samourai Wallet co-founder and charged him with money laundering and operating without a license.
- Cryptocurrency mixers facilitated over $2 billion in illicit transactions and over $100 million in dark web money laundering.
- Authorities seized Samourai Wallet’s web services and domain and removed the app from the Google Play Store.
The U.S. Department of Justice (DOJ), along with other federal agencies, have The co-founder of cryptocurrency mixer Samourai Wallet has been arrested.
CEO Keonne Rodriguez and CTO William Hill were both accused of: One count of conspiracy to commit money laundering and one count of conspiracy to operate an unlicensed money transfer business.
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Rodriguez and Hill He was accused of laundering more than $100 million. Includes transactions linked to dark web markets such as Silk Road and Hydra Market.
Samourai Wallet served the likes of Whirlpool and Ricochet. Hide traces of cryptocurrency transactions, This complicates efforts to trace illicit funds.
FBI Assistant Director in Charge James Smith said:
<사무라이 지갑>provided criminals with a virtual haven for the clandestine exchange of illicit funds, facilitating more than $2 billion in illicit transactions and laundering $100 million in dark web money. The FBI is committed to exposing clandestine financial schemes and ensuring that no one can hide behind a screen to perpetuate financial crime.
If found guilty, Rodriguez and Hill will face charges. You can be sentenced to up to 25 years in prison. As Hill was arrested in Portugal, subject to extradition proceedings By the U.S. Attorney’s Office for the Southern District of New York.
In addition to arrests, operations were also carried out. The company’s infrastructure was targeted. They seized web servers and domains and removed the Samourai Wallet app, which had over 100,000 downloads, from the Google Play Store.
According to blockchain security firm CertiK, the incident reflects ongoing efforts by U.S. authorities to curb the use of digital currencies in illicit activities, particularly a crackdown on cryptocurrency mixers that have emerged as a preferred choice for money laundering.
This follows similar actions against other cryptocurrency mixers such as Tornado Cash, whose founders were also arrested due to sanctions from the Office of Foreign Assets Control (OFAC) in 2022.
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