tl;dr
The co-founders of Samourai Wallet, Keonne Rodriguez and William Lonergan Hill, have been arrested by US authorities on charges of operating an unlicensed money-transmitting business and conspiracy to commit money laundering. They are accused of facilitating the laundering of over $100 million in cr...
Co-founders of Samourai Wallet arrested for operating unlicensed money-transmitting business and conspiracy to commit money laundering
Keonne Rodriguez and William Lonergan Hill, the co-founders of Samourai Wallet, have been arrested by US authorities on charges of operating an unlicensed money-transmitting business and conspiracy to commit money laundering.
Alleged Criminal Activities
The arrest follows an extensive investigation led by the United States Department of Justice (DOJ), the Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. The indictment reveals that Samourai Wallet allegedly conducted over $2 billion in "unlawful transactions," earning millions of dollars in fees.
Whirlpool and Ricochet Features Under Scrutiny
The cryptocurrency mixing service offered by Samourai Wallet, known as "Whirlpool," is alleged to have facilitated the coordination of cryptocurrency exchanges between groups of users to prevent the tracing of criminal proceeds on the blockchain. Additionally, the company provided a feature called "Ricochet," allowing users to add unnecessary intermediate transactions to allegedly obfuscate the origin of cryptocurrency batches.
Legal Proceedings
Rodriguez has been arrested and is expected to appear before a US Judge in the Western District of Pennsylvania, while Hill was arrested in Portugal and faces extradition for trial. They face up to 5 years in prison.
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