William Hill, Samourai Wallet CTO, Sentenced to Four Years in Prison
On November 20, 2025, a New York judge sentenced William Lonergan Hill, co-founder and CTO of Samourai Wallet, to four years in prison. The sentence includes three years of supervised release and a fine of $250,000. This ruling comes just two weeks after his co-founder, Keonne Rodriguez, received a five-year sentence and a similar fine.
The Charges: Operating an Unlicensed Money Transmitter
Hill and Rodriguez pleaded guilty in July 2025 to conspiring to operate an unlicensed money transmitter. The two were accused of processing over $2 billion worth of Bitcoin using the wallet’s tools, like the “Whirlpool” mixing service and “Ricochet” transaction hop tool. These services reportedly earned them an estimated $6 million in fees between 2017 and 2024, allegedly by helping criminals launder funds on the darknet.
According to prosecutors, the pair marketed Samourai Wallet as a tool for anonymity on forums such as Dread, claiming it could help ‘clean dirty BTC.’ The case has ignited debates around the legal risks faced by developers creating privacy-focused tools for cryptocurrencies.
Broader Implications for Cryptocurrency and Privacy
The U.S. Department of Justice emphasized that this case sends a strong signal: facilitating the laundering of criminal proceeds—regardless of whether they’re in fiat money or cryptocurrency—will not go unpunished. U.S. Attorney Nicolas Roos declared the sentencing a warning to all who misuse evolving technologies.
Crypto privacy advocates, however, argue this ruling could hinder technological innovation. Kadan Stadelmann, Chief Technology Officer at the Komodo Platform, highlighted the unfair targeting of privacy tools that aim to provide financial transparency. He noted that such cases could set concerning precedents for the custody-free software development community.
A Call for Justice Reform in the Crypto Industry
Rodriguez has since launched a petition appealing to the U.S. government for a presidential pardon for both himself and Hill. “Developers shouldn’t be liable for the actions of bad actors using their software,” he tweeted. Privacy advocates urge the industry to continue developing decentralized tools to protect privacy in the face of increasing regulation and enforcement actions.
Consider a Secure Cryptocurrency Wallet
For those engaged in cryptocurrency management, choosing tools responsibly is critical. Ensure you are using wallets certified for regulated transactions. Products like the Ledger Nano X provide secure storage for cryptocurrencies while adhering to compliance standards, safeguarding users’ privacy responsibly.
As privacy and crypto regulations evolve, finding a balance between innovation and compliance will remain a key conversation in the fintech industry.
