Samourai Wallet Co-Founder Keonne Rodriguez Pleads Not Guilty, Released on $1M Bond

Last week, Rodriguez, aged 35, and his business partner William Lonergan Hill, 65, were taken into custody – Rodriguez in Pennsylvania, and Hill in Portugal. They are accused of conspiring to carry out money laundering and running an unlicensed money transmitting business without authorization. If found guilty, they face a possible sentence of up to 20 years for money laundering conspiracy and five years for operating an unlicensed money transmitting business.

Between 2015 and the recent confiscation of Samourai Wallet’s servers, according to prosecutors, the app is believed to have processed over $100 million worth of money laundering deals from illicit dark web markets. Furthermore, approximately $2 billion in total questionable transactions are suspected to have taken place using this wallet application.

The apprehension of Samourai Wallet users and its suspension coincide with the US government’s upcoming legal action against Roman Storm, the developer of Tornado Cash. This turn of events has sparked significant controversy within the crypto community, who view it as an attempt by the authorities to stifle financial privacy.

As an analyst, I would rephrase this by saying: In the DOJ’s recent press announcement regarding the arrest of Rodriguez and Hill last week, it was mentioned that they actively encouraged users to launder ill-gotten gains and deliberately targeted restricted markets.

Around 6 a.m. on April 24, Rodriguez was first taken into custody at his residence in Harmony, Pennsylvania. Later, a Pennsylvania court granted him bail in the amount of $25,000 and instructed him to appear before a judge in the Southern District of New York (SDNY) by Monday morning.

On Monday, Magistrate Judge Barbara Moses granted bail for Rodriguez with a bond amounting to $1 million. The terms of this bail agreement were accepted by both federal prosecutors and Rodriguez’s legal team – Sean Buckley and Michael Keilty from international law firm Kobre Kim.

The real estate property in Pennsylvania will serve as collateral for Rodriguez’s bond, while his wife and another family member are required to provide signatures as well. Rodriguez’s court attendance is the only permitted travel outside of his home. He will be subjected to constant monitoring through location tracking technology while residing at home.

The upcoming court hearing for Rodriguez is scheduled in Manhattan on the 14th of May, beginning at 2 p.m., presided over by District Judge Richard Berman.

Berman oversaw Mango Markets exploiter Avraham Eisenberg’s trial earlier this year.