Keonne Rodriguez, 37, and William Lonergan Hill, 37, founders and CEO of cryptocurrency mixing service Samourai, were arrested and charged with money laundering and unlicensed money transmitting offenses.
The indictment alleges that Rodriguez and Hill, both New York residents, knowingly facilitated the laundering of over $100 million of criminal proceeds from the Silk Road, Hydra Market, and other computer hacking and fraud campaigns.
According to the allegations, Samourai executed over $2 billion in unlawful transactions and served as a haven for criminals to engage in large-scale money laundering.
U.S. Attorney Damian Williams said, “As alleged, Keonne Rodriguez and William Lonergan Hill are responsible for developing, marketing, and operating Samourai, a cryptocurrency mixing service that executed over $2 billion in unlawful transactions and served as a haven for criminals to engage in large-scale money laundering.”
IRS-CI Special Agent in Charge Thomas Fattorusso added, “$2 billion in transactions with an unlicensed money transmitter means $2 billion flowed without any oversight, from whomever to wherever.”
FBI Assistant Director in Charge James Smith stated, “Threat actors utilize technology to evade law enforcement detection and create environments conducive to criminal activity.”
Keonne Rodriguez was arrested this morning and is expected to be presented today or tomorrow before a U.S. Magistrate Judge in the Western District of Pennsylvania.
William Lonergan Hill was arrested this morning in Portugal based on the U.S. criminal charges. The United States will seek Hill’s extradition to stand trial in the United States.
The case is assigned to U.S. District Judge Richard M. Berman.
In coordination with law enforcement authorities in Iceland, Samourai’s web servers and domain (https://samourai.io/) were seized.
A seizure warrant for Samourai’s mobile application was served on the Google Play Store. As a result, the application will no longer be available to be downloaded from the Google Play Store in the United States.
Samourai’s mobile application was used to facilitate the laundering of over $100 million in criminal proceeds.
Related Federal Cases
- Cryptocurrency Tycoon Keonne Rodriguez Arrested for $2 Billion Money Laundering Scheme · Pennsylvania
- Dariusz J. Prugar Sentenced for Hacking ISP After Firing · Pennsylvania
- NY Man Sentenced for Threats Over the Internet · Pennsylvania
- Ukrainian Hacker Pleads Guilty to Massive Hacking Scheme · New Jersey
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Cybercrime
- Source: Official Source ↗
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