The developers of the Bitcoin mixing service Samourai Wallet pleaded guilty to one count of conspiracy to operate an unlicensed money transmitting business on Wednesday, accepting a plea deal that significantly reduced their potential prison sentences for their role in creating a privacy tool that prosecutors claim was used to launder over $100 million in illicit funds.
During back-to-back hearings before U.S. District Judge Denise Cote of the Southern District of New York (SDNY), both Keonne Rodriguez and William “Bill” Lonergan Hill changed their pleas. Initially, they were charged with one count each of conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business, to which they had both pleaded not guilty.
The plea deal allowed them to avoid the more serious money laundering charge, which carries a maximum sentence of 20 years in prison, in exchange for pleading guilty to the lesser money transmitting charge, which has a maximum sentence of five years. Furthermore, both Rodriguez and Hill agreed to forfeit nearly $238 million combined, with $6.3 million to be paid prior to their sentencing date in November.
The change of plea comes as Tornado Cash developer Roman Storm — facing similar charges for creating another privacy-oriented crypto mixing service — stood trial in the same court. Storm’s trial concluded just hours after the Samourai Wallet developers pleaded guilty, and the jury is currently deliberating.
The government offered a plea deal to the Samourai Wallet developers while Storm’s trial was still active, according to a source familiar with the situation, as reported by RialCenter.
Until their sentencing later this year, Cote mandated that they remain under house arrest and ordered Hill — a resident of Portugal — to return to New York to complete his house arrest closer to the court.
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