U.S. Authorities Detain Crypto Mixer Creator Amid Crackdown on Money Laundering

William Lonergan Hill, who co-founded the cryptocurrency mixing platform Samourai Wallet, was

on Wednesday by a U.S. District Court in Manhattan for his involvement in running a service that prosecutors claim laundered more than $237 million in illegal proceeds. The punishment, which is one year less than the maximum five-year sentence for conspiring to operate an unlicensed money transmitting business, and reflects the growing regulatory focus on crypto mixing services. Hill, age 67, and his business partner Keonne Rodriguez, who served as Samourai’s CEO, were also and have already surrendered assets worth over $6.3 million.

This prosecution represents

against crypto mixing operations during the Trump administration, highlighting federal authorities’ determination to uphold anti-money laundering regulations in the digital currency sector. U.S. Attorney Nicolas Roos stated that the penalties "send a clear message" that laundering criminal money—whether in traditional currency or crypto—will result in "serious consequences" . Judge Denise Cote, who oversaw the proceedings, called the offense "very serious," emphasizing the damage inflicted on "countless victims" whose identities Hill would never know.

Samourai Wallet, a

mixing platform, , a function that prosecutors argued was deliberately used to conceal funds from unlawful dark web activities. The service has been likened to Tornado Cash, another mixer whose developer, Roman Storm, is still facing legal proceedings. While Storm’s trial ended in a mistrial on major charges in August, on conspiracy-related allegations. In contrast, the Samourai case that allowed Hill and Rodriguez to avoid a jury trial.

Hill’s lawyers

, health concerns, and the precedent of Trump-era pardons for crypto figures such as Ross Ulbricht and Changpeng Zhao. They suggested that home detention would be sufficient, given Hill’s intention to retire quietly in Portugal. However, Judge Cote denied this, stating that the punishment was needed to discourage similar offenses . Rodriguez, who was sentenced to five years in August, has not yet filed an appeal.

The verdict has ignited discussion within the cryptocurrency sector about how to balance privacy with regulation. Although privacy tools are often promoted as vital for protecting users,

as tools that can facilitate illegal activity. The U.S. Department of Justice’s latest guidance, which raises the bar for prosecuting crypto service providers, demonstrated in the Samourai case. Some critics warn that such enforcement could hinder technological progress, while supporters argue that it is essential for combating financial crime .

On a global scale,

across different countries, with some imposing outright bans and others adopting more favorable policies. The United States has chosen a moderate approach, with the Trump administration easing certain enforcement actions but also introducing legislation like the Genius Act to oversee stablecoins . The Samourai case brings to light the ongoing struggle between encouraging innovation and ensuring regulatory compliance, a dilemma that is likely to become more pronounced as digital assets gain traction.

At present, Hill’s sentencing acts as a warning to developers of privacy-centric technologies. As authorities continue to crack down on unlicensed platforms, the boundary between legitimate development and criminal assistance is becoming more blurred

. The result could shape how other mixing services approach compliance, with some possibly to reduce legal risks.