William "Bill" Hill, a co-founder of Samourai Wallet, was sentenced to four years in prison in New York on November 19, 2025, for operating an unlicensed money transmitting business.
The case highlights regulatory scrutiny on cryptocurrency privacy tools, impacting privacy-focused wallets amid concerns over their role in illicit financial activities.
Samourai Wallet Co-Founder Jailed for $237M Laundering
William "Bill" Hill, a co-founder of Samourai Wallet, received a four-year prison term for his role in operating an unlicensed money transmitting business. His conviction stems from laundering $237 million using the Bitcoin mixing tool "Whirlpool."
Hill, living in Lisbon, was sentenced in the Southern District of New York. His co-founder, Keonne Rodriguez, was sentenced earlier for a similar charge. Both founders promoted tools aiding transaction privacy, maintaining ties to illicit networks.
"I told myself that my work was about freedom but in truth, I was rationalizing my own hubris. I have learned a painful but essential lesson from this experience and I take full responsibility for my actions." — William "Bill" Hill, Co-founder and CTO, Samourai Wallet
Privacy Tools Face Regulatory Clamps Post-Conviction
The conviction may heighten scrutiny on cryptocurrency privacy tools and their legitimacy. Developers of similar technologies face potential regulatory pressures. Heightened risk for those involved in privacy-focused tools is anticipated amid ongoing government crackdowns.
Industry observers caution that this may lead to a decline in Bitcoin mixer activity. Past cases like Tornado Cash suggest a worrisome trend for privacy tools. Future regulations seem likely to hinder technological innovation in this sector.
US Consistency in Regulating Crypto Mixers Evident
This case mirrors the US crackdown on Tornado Cash in 2022, which disrupted Ethereum-based mixers. Actions against ChipMixer and Bestmixer reflect consistent regulatory stances against tools seen aiding in illegal financing activities.
Experts predict tightening regulations around cryptocurrency privacy tools as authorities intensify oversight. Developers face growing concerns about further legal actions, thereby creating a challenging environment for open-source privacy solution advancements.