• U.S. authorities have arrested Keonne Rodriguez and William Lonergan Hill, founders of Bitcoin mixer Samourai Wallet
• They are charged with conspiracy to commit money laundering
• Samourai Wallet’s server and web domain have been seized
US authorities have arrested and charged the founders of Bitcoin mixer Samourai Wallet, accusing them of conspiracy to commit money laundering. The arrests come as authorities ramp up efforts to crack down on services that aim to obscure the flow of cryptocurrencies.
Details of the Charges
The US Attorney’s Office for the Southern District of New York announced on Wednesday that Keonne Rodriguez and William Lonergan Hill were charged with operating a cryptocurrency mixer that executed over $2 billion in unlawful transactions. The mixer also facilitated more than $100 million in money laundering transactions from illegal dark web markets, according to the statement.
Both Rodriguez and Hill have been arrested, and Samourai’s server and web domain have been seized.
Authorities Crack Down on Mixers
Cryptocurrency mixers or tumblers are services that attempt to obscure the origin of digital assets by mixing potentially identifiable crypto funds with others. This makes it harder to trace the flow of funds back to any specific user.
Authorities have been ramping up efforts to crack down on mixers and other anonymity services. This includes sanctioning certain mixing services and exchanges that list privacy coins.
Critics argue that restricting mixers harms user privacy and could make using cryptocurrency dangerous for those living under authoritarian regimes. Supporters say restrictions are necessary to prevent illicit activity.
The charges against the founders of Samourai Wallet represent the latest salvo in this ongoing battle between authorities and privacy services. The case will likely renew debate around balancing privacy and law enforcement in the cryptocurrency space.
Conclusion
The arrests of the founders of Samourai Wallet show authorities are continuing efforts to restrict anonymity services in order to better track the flow of funds on blockchains. However, privacy remains a core value for many in crypto, so tensions around these restrictions are likely to persist.
