Samourai Wallet Founders Face Jail Time? DOJ Case Takes Dramatic Turn as Execs Prepare Guilty Pleas

Crypto's privacy wars escalate as Samourai Wallet's leadership folds to federal pressure.

The Hammer Drops

Founders of the Bitcoin mixing service now stare down prison sentences—with plea deals suggesting the DOJ's crypto crackdown is gaining steam. No more 'alleged'—this is happening.

Why This Stings

Samourai pitched itself as financial freedom tech. Regulators called it a money-laundering toolkit. Guess whose narrative just got validated?

The Bigger Picture

Another win for the three-letter agencies. Meanwhile, TradFi banks laundering billions get fines they write off as 'operating costs.' Priorities, right?

How this impacts Tornado Cash’s battle

Roman Storm, the co-founder of Ethereum-based mixer Tornado Cash, is currently on trial for similar charges. The DOJ accused Storm and his co-developers of enabling the laundering of funds through Tornado’s smart contracts, some of which were later linked to North Korean hackers and sanctioned entities.

One of Storm’s co-founders, Alexey Pertsev, has already been sentenced by a Dutch court. Storm, however, maintains his innocence and continues to fight the charges. 

With Samourai’s founders preparing to plead guilty, pressure is mounting that the case could set a potential precedent that prosecutors may now lean on in the Tornado case, particularly as both projects face near-identical allegations around privacy tech and its use by illicit actors.

Still, the industry members are rallying in support of both firms.

War against privacy?

Several Industry figures, including ethereum co-founder Vitalik Buterin have long defended both Samourai Wallet and Tornado Cash, arguing that writing code shouldn’t be treated as a crime. Many have emphasized that privacy is fundamental to the industry, and that the teams shouldn’t be held responsible for how bad actors use their tools.

News of the impending guilty pleas has reignited the debate. On X, one user warned that the outcome could set a dangerous precedent that intimidates future developers and stifles innovation.

The Samourai wallet founders’ guilty pleas are now scheduled for Wednesday, July 30, 2025, in the U.S. District Court for the Southern District of New York.