In a big improvement, Keonne Rodriguez and William Lonergan Hill, founders and CEO of the privacy-focused Bitcoin pockets and mixer, Samourai Pockets, have been arrested and charged with cash laundering and working an unlicensed cash transmitting enterprise. The U.S. Division of Justice (DOJ), Southern District of New York, introduced these fees right this moment following an in depth investigation into their actions.
JUST IN: 🇺🇸 US DEPARTMENT OF JUSTICE ARRESTS POPULAR #BITCOIN MIXER SAMOURAI WALLET FOUNDERS AND CEO, CHARGED WITH MONEY LAUNDERING pic.twitter.com/8qyMBGRBjL
— Bitcoin Journal (@BitcoinMagazine) April 24, 2024
The fees stem from allegations that Rodriguez and Hill, by means of their firm Samourai Pockets, facilitated over $2 billion in illegal transactions and allegedly laundered greater than $100 million in legal proceeds. This exercise primarily concerned transactions from unlawful darkish internet markets, in addition to schemes to defraud decentralized finance protocols, the DOJ acknowledged. The defendants are accused by the DOJ of growing, advertising and marketing, and working a bitcoin and cryptocurrency mixer that supplied a platform for criminals to have interaction in large-scale cash laundering.
“$2 billion in transactions with an unlicensed cash transmitter means $2 billion flowed with none oversight, from whomever to wherever. Due to the corporate’s disregard for regulation, it’s alleged that Samourai Pockets laundered greater than $100 million in legal proceeds,” acknowledged IRS-CI Particular Agent in Cost Thomas Fattorusso. “Particular Brokers with IRS:CI New York and IRS:CI LA’s Cyber items labored with our federal and worldwide legislation enforcement companions to not solely arrest the founders and CEO, however to additionally seize their area. Samourai Pockets is now closed for enterprise.”
The coordinated effort by legislation enforcement companies led to the arrests of Rodriguez and Hill. Rodriguez was apprehended within the Western District of Pennsylvania, whereas Hill was arrested in Portugal based mostly on the U.S. legal fees. The USA plans to hunt Hill’s extradition to face trial within the nation.
“As alleged, Keonne Rodriguez and William Lonergan Hill are liable for growing, advertising and marketing, and working Samourai, a cryptocurrency mixing service that executed over $2 billion in illegal transactions and served as a haven for criminals to have interaction in large-scale cash laundering,” stated U.S. Legal professional Damian Williams. “Rodriguez and Hill allegedly knowingly facilitated the laundering of over $100 million of legal proceeds from the Silk Street, Hydra Market, and a bunch of different laptop hacking and fraud campaigns. Along with our legislation enforcement companions, we are going to proceed to relentlessly pursue and dismantle legal organizations that use cryptocurrency to cover illicit conduct.”
Moreover, in collaboration with authorities in Iceland, Samourai’s internet servers and area had been seized, together with a seizure warrant served on the Google Play Retailer for the Samourai Pockets cell software. This motion ensures that the appliance is now not accessible for obtain in the US.
FBI Assistant Director in Cost James Smith concluded: “Risk actors make the most of expertise to evade legislation enforcement detection and create environments conducive to legal exercise. For nearly 10 years, Keonne Rodriguez and William Hill allegedly operated a cell cryptocurrency mixing platform which supplied different criminals a digital haven for the clandestine change of illicit funds, the facilitation of greater than $2 billion in unlawful transactions, and $100 million in darkish internet cash laundering. The FBI is dedicated to exposing covert monetary schemes and making certain nobody can cover behind a display to perpetuate monetary wrongdoing.”