Samourai Wallet Co-Founder Denies Money Laundering Charges

Custodia Bank files appeal

Keonne Rodriguez, a Samourai Wallet co-founder, has pleaded not guilty to his alleged role in operating a crypto mixer service. This case develops as the U.S. authorities increase their surveillance over technologies aimed at improving the privacy of cryptocurrency transactions.

Charges and Court Appearance

Rodriguez, 35, was accused in the U.S. District Court for the Southern District of New York of conspiracy to commit money laundering and to operate an unlicensed money-transmitting business.

The charges are based on allegations that Samourai Wallet allowed over $100 million in money laundering transactions bound to the illegal dark web market. The prosecution alleges that during the period of 2015-2024, the wallet conducted unlawful transactions totaling over 2 billion dollars.

At his court-related appearance, Rodriquez got a bond of one million dollars which was secured by real estate and the signatures of his family members. He was given liquidated damages and ordered to observe house arrest in Pennsylvania, where he is watched by GPS and is not allowed to engage in cryptocurrency transactions without the government’s permission.

Samourai Wallet Co-Founder’s Defense

Rodriguez’s legal team, represented by lawyers from Kobre Kim, an international law firm, sought his bail, with his non-flight risk status and readiness to respect court orders being emphasized. The legal process will, however, proceed with another hearing scheduled on May 14 where more case particulars will be discussed.

In the defense’s view, Rodriguez is depicted as a cryptocurrency innovator regarding privacy features that are not necessarily illegal. His legal representatives will probably contend that the services provided by Samourai Wallet present legitimate privacy protections for lawful users, which are very important at a time when digital privacy is growing in value.

Many cryptocurrency community members have turned their attention to this case, which has become part of the growing discussion on the trade-off between privacy and the need for regulation. Moreover, Rodriguez’s arrest and that of his co-founder William Lonergan Hill have created worry among privacy advocates that legal actions might inhibit technological developments in cryptocurrency privacy.

This case has implications for similar technologies and their creators, including the Tornado Cash platform whose developer is also charged with money laundering.

Read Also: Yuga Labs and Moonbirds Introduce Enhanced NFT Holder Rights

The post Samourai Wallet Co-Founder Denies Money Laundering Charges appeared first on CoinGape.


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