Samourai Wallet Dev Faces Maximum Sentence: Keonne Rodriguez Gets No Leniency in Landmark Crypto Case

Justice comes down hard on privacy-focused crypto developer as courts send a clear message to the industry.

In a ruling that shocked the crypto community, Keonne Rodriguez—co-founder of Samourai Wallet—received the harshest possible penalty for his role in developing the privacy tool. The verdict lands like a sledgehammer on the delicate balance between innovation and regulation.

Privacy tech or criminal tool? Courts aren't buying the 'neutral technology' argument anymore.

The prosecution painted Rodriguez's creation as a money-laundering paradise, while defense attorneys argued it was simply financial privacy tech—like Swiss bank accounts for the blockchain age. Neither the judge nor jury bought the latter argument.

This case sets a dangerous precedent for developers building censorship-resistant tools. Next time VCs fund 'privacy-preserving' protocols, they might want to check if the SEC considers it a felony first.

Pleas And Sentencing Dates

According to court documents, Rodriguez pleaded guilty in mid-2025 to running an unlicensed money transmitting business. The plea did not encompass all counts within the original indictment but did result in the scheduling of a sentencing hearing.

On November 6, 2025, a judge imposed the longest prison term of five years sought by prosecutors for that count. His co-founder, William Lonergan Hill, faces related proceedings after being arrested overseas; extradition efforts are underway.

Defense: He lived in a $250,000 home in Harmony, PA unlike SBF. He’s an engineer. He’s a warm family man. Keonne Rodriguez: I agree with what my counsel said. My letter, I wanted it to be personal. I’ve been silent for 18 months. I wanted to bring my story to you

— Inner City Press (@innercitypress) November 6, 2025

Samourai Wallet: Allegations And Figures

According to the Department of Justice, Samourai Wallet and associated services processed approximately $2 billion in transactions that the government says included funds tied to illegal activity.

Prosecutors say that more than $100 million of criminal proceeds were laundered through features allowing users to mix or route coins via extra hops.

The tools at the center of the case — known as Whirlpool and Ricochet — were repeatedly mentioned in filings as methods that made tracing funds difficult. The government also said the founders marketed these features in ways they said appealed to bad actors.

Records show the charge of unlicensed money-transmitting business carries up to five years in prison. The federal probation office had suggested a term below that, recommending about 42 months, but prosecutors asked the court to impose the full five-year sentence.

Those figures were based on court documents and public statements by the US Attorney’s Office in the Southern District of New York.

Reports have identified that the defendants did not plead guilty to each of the counts in the original complaint, with the plea agreement leaving some counts unresolved.

That has left defense lawyers and outside experts focusing on what the case means for software developers and privacy tools that operate in the cryptocurrency space.

Legal filings reflect a complex combination of criminal allegations and regulatory questions, and in various hearings, both parties used technical and legal arguments.

The sentence has drawn sharp takes from different corners. Privacy advocates warn that criminal penalties aimed at developers could chill open-source work and set new limits on tools used by ordinary people to protect their financial privacy.

Featured image from Unsplash, chart from TradingView