Keonne Rodriguez, one of the co-founders of the cryptocurrency mixer Samourai Wallet, was sentenced to five years in prison on Thursday for his role in operating a service that allegedly laundered “hundreds of millions of dollars” derived from illegal dark web activities and fraudulent schemes.
Rodriguez entered a guilty plea to this charge back in July as part of a plea agreement with prosecutors. In a memorandum submitted by prosecutors on October 31, they requested five-year sentences for both Rodriguez and his fellow co-founder, William Lonergan Hill.
At the sentencing, Judge Cote criticized Rodriguez for facilitating the laundering of funds often stolen from unsuspecting victims. “You chose to use your considerable talents to make it harder to recoup those stolen funds,” she remarked.
Recent guidelines released by the Department of Justice (DOJ) in April have raised the bar for prosecuting crypto mixers and service providers for the actions of their users, making Rodriguez’s case particularly noteworthy.
Rodriguez’s defense team had requested a lenient sentence of just over a year, arguing that he had no prior criminal record and was seen as a model citizen and family man.
However, they acknowledged that over time, he became aware that some users were employing the service to transfer Bitcoin (BTC) from illicit activities, yet he continued to operate the business without taking steps to prevent such transactions. His lawyers characterized this behavior as regrettable criminal conduct.
Expressing his remorse during the sentencing, Rodriguez told the judge, “I am truly sorry and I understand the seriousness of my crimes.”
As part of their plea deal, both Rodriguez and Hill agreed to forfeit $237 million and pay a $400,000 fine. Hill is set to be sentenced on November 19.
Featured image from DALL-E, chart from TradingView.com
