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Cryptocurrency Tycoon Keonne Rodriguez Arrested for $2 Billion Money Laundering Scheme
Keonne Rodriguez, the 36-year-old CEO and co-founder of cryptocurrency mixing service Samourai Wallet, is facing the music for allegedly running a $2 billion money laundering operation. The 36-year-old Rodriguez was arrested this morning in the Western District of Pennsylvania and is expected to be presented to a U.S. Magistrate Judge today or tomorrow.
According to the indictment unsealed in Manhattan federal court, Rodriguez and his co-founder, 32-year-old William Lonergan Hill, allegedly developed, marketed, and operated Samourai Wallet, a cryptocurrency mixer that executed over $2 billion in unlawful transactions and facilitated more than $100 million in money laundering transactions from illegal dark web markets, such as Silk Road and Hydra Market.
“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,” said U.S. Attorney Damian Williams. “Rodriguez and Hill allegedly knowingly facilitated the laundering of over $100 million of criminal proceeds from the Silk Road, Hydra Market, and a host of other computer hacking and fraud campaigns.”
Samourai’s web servers and domain (https://samourai.io/) were seized in coordination with law enforcement authorities in Iceland, and a seizure warrant for Samourai’s mobile application was served on the Google Play Store. The application will no longer be available to be downloaded from the Google Play Store in the United States.
“$2 billion in transactions with an unlicensed money transmitter means $2 billion flowed without any oversight, from whomever to wherever,” said IRS-CI Special Agent in Charge Thomas Fattorusso. “Because of the company’s disregard for regulation, it’s alleged that Samourai Wallet laundered more than $100 million in criminal proceeds.”
The FBI is committed to exposing covert financial schemes and ensuring no one can hide behind a screen to perpetuate financial wrongdoing, said FBI Assistant Director in Charge James Smith. “Threat actors utilize technology to evade law enforcement detection and create environments conducive to criminal activity. For almost 10 years, Keonne Rodriguez and William Hill allegedly operated a mobile cryptocurrency mixing platform which provided other criminals a virtual haven for the clandestine exchange of illicit funds, the facilitation of more than $2 billion in illegal transactions, and $100 million in dark web money laundering.”
Keonne Rodriguez and William Lonergan Hill are charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. If convicted, Rodriguez and Hill could face up to 20 years in prison.
The case is assigned to U.S. District Judge Richard M. Berman.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Cybercrime|Fraud & Financial Crimes
- Source: Official Source ↗
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