Keonne and Hill Samourai Wallet Case: 5 Years Jail? Not All Agree

Samourai Wallet Case Update: US Seek 5 Years Jail, But Was It a Crime?

The crypto world is once again caught between freedom and control. In what many experts call a turning point for Bitcoin’s data protection future, the US Government is asking for the maximum five-year jail sentence for Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill.

They are accused of helping criminals hide crypto worth $237 million laundering through their Bitcoin privacy vault.

Source: The Rage Official X Account

But the real question behind this courtroom drama is — Is isolation a crime? The Samourai Wallet Case update could change how data protection tools are treated under U.S. law.

Bitcoin Privacy Wallet Case: Toughest Courtroom Test Yet

Both Keonne Rodriguez and William lonergan Hill have pleaded guilty to running an unlicensed money transfer business, saying they built Samourai Wallet to help users protect their privacy. 

It became famous for features like Whirlpool and Ricochet, which mix and hide BTC transactions. However, according to the US Government, these weren’t just tools, they were made to launder criminal money. 

Officials claim $237 million linked to drug trafficking, darknet markets, hacking, fraud, and even child exploitation websites. Shocking details revealed for the first time in the Samourai Wallet Case.

The government wrote in its report:

“The defendants’ crimes were not a mistake or regulatory lapse but a clear plan to help criminals hide their tracks using Bitcoin.”

The charge of money laundering conspiracy was dropped under a Samourai wallet plea deal, but the unlicensed money transmitter charge still carries up to five years in prison and three years of supervised release.

Sentencing Dates, Fines, and Forfeitures Revealed

Here’s what’s next in the Samourai developers sentencing 2025:

• Keonne Rodriguez Samourai Case: Sentencing on November 6, 2025. Fined $250,000 and is under curfew.

• William Hill: Sentencing on November 7, 2025. He also faces a $400,000 fine, has given up his passport, and cannot leave the U.S.

William Lonergan Hill Samurai Wallet Defense: “I Built Tools, Not Crimes”

In a heartfelt letter to Judge Cote, he said he created the software to protect freedom, not to help criminals.

“I co-founded a software company to develop tools that could provide the anonymity necessary to make btc work as intended,” he wrote.

He pointed out that the app never controlled users’ money, so it should not count as a money transfer business under the law. His side argues that the Samourai Wallet Case is not about crime, but about standing up for privacy rights.

Rodriguez’s Defense: “We Helped Victims, Not Criminals”

While the government calls him a money-laundering mastermind, his defenders tell a different story. A former Mt. Gox user wrote that he personally helped trace stolen Bitcoin after a major exchange hack, and that work led to OXT, a public blockchain tracing tool that still helps victims recover lost funds.

His lawyers argue that this court case unfairly paints him as a criminal instead of a developer who wanted to help others stay safe.

The Bigger Picture: Privacy, Power, and Precedent

This crypto news is about more than just two people — it’s about the future of privacy in $BTC.

Now both developers are waiting for their final sentencing — each facing up to five years in jail, large fines, and the loss of $237 million. Their plea deal removed the harsher 20-year money-laundering charge, but prosecutors still want to make an example of them.

Note: Crypto market community is split on privacy vs regulation. To privacy supporters, these two people are heroes fighting for freedom, and to regulators, they are developers who built tools to hide crime.

No matter which side wins, the Samourai Wallet Case explains one thing clearly; the battle between privacy and government power is only getting started.

Disclaimer: This article is for educational purposes only, and does not support any financial advice. So it's better to always DYOR before making any decision.