Their plea follows failed attempts to dismiss the case and arrives at a time of growing legal pressure on crypto privacy tools, especially with Tornado Cash developer Roman Storm also facing trial and up to 45 years behind bars. In a separate case, Vincent Mazzotta Jr. pleaded guilty to running a $13 million crypto Ponzi scheme involving fake AI trading bots and a fictitious government agency. He faces a maximum sentence of 15 years.
Samourai Executives Face 25 Years
Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill are preparing to plead guilty to criminal charges related to their involvement in the crypto mixing protocol. In filings that were made Tuesday in a New York federal court, both Rodriguez and Hill indicated their intent to change their earlier not guilty pleas. A hearing is scheduled for Wednesday morning before Judge Denise Cote.
Change of plea (Source: CourtListener)
They were initially charged in April of 2024, and now face allegations of running an unlicensed money-transmitting business that facilitated more than $2 billion in unlawful transactions, some allegedly tied to dark web platforms like Silk Road. Rodriguez, the company’s CEO, and Hill, its CTO, were accused of conspiracy to commit money laundering. This charge could result in a 20-year prison sentence. Alongside that, the unlicensed money transmission charge carries an additional five-year sentence, putting the pair at risk of a maximum 25 years behind bars.
Samourai Wallet website (Source: US Attorneys Office)
Their decision to plead guilty was made months after attempts to have the case dismissed. In April, the defense pointed to a Department of Justice memo suggesting that unwitting violations related to crypto mixers would not be prosecuted. Later, they accused federal prosecutors of withholding guidance that Samourai did not require a money-transmitting license, but these efforts failed to sway the court.
Samourai Wallet functioned like other crypto mixers, by blending funds from different users to obscure their origins and enhance privacy. The timing of the guilty pleas coincides with growing scrutiny on crypto privacy tools, especially as Roman Storm, co-creator of Tornado Cash, faces trial for similar charges.
Storm's case has become a focal point, and advocates warn that a conviction could set a very dangerous precedent against the development and use of open-source privacy technologies. Storm faces up to 45 years in prison if convicted on all counts.
Ponzi Player Admits Guilt
Vincent Anthony Mazzotta Jr, a central figure in a $13 million crypto Ponzi scheme that falsely touted the use of artificial intelligence-powered trading bots and even created a fake government agency, also recently pleaded guilty to money laundering and conspiracy to obstruct justice.
The US Department of Justice announced the plea on Monday, and shared that Mazzotta admitted to defrauding investors through bogus investment firms that promised high returns using AI-based trading strategies. He faces a maximum sentence of 15 years in prison, though sentencing has not yet been determined.
Press release (Source: DOJ)
The scheme operated through companies like Mind Capital and Cloud9Capital, and Mazzotta played a key role in orchestrating the fraud and then attempting to cover it up. As part of the ruse, Mazzotta co-created a fictitious federal entity, the “Federal Crypto Reserve,” which posed as a US government agency investigating the very firms that stole investors’ funds. Victims were misled into paying thousands of dollars to the fake agency in hopes of recovering their investments.
Mazzotta was first charged in a 2023 superseding indictment in connection with a larger case involving his alleged co-conspirator David Saffron, He pleaded not guilty and is set to face trial on Sept. 16. Another person tied to the operation, David Kagel, previously pleaded guilty and received five years’ probation along with an order to pay more than $13.9 million in restitution.
The Justice Department’s investigation found that from 2017 to 2023, Mazzotta and his associates laundered investor funds through crypto mixers before spending the proceeds on a lavish lifestyle, including private jet flights, luxury accommodations, mansions, personal chefs, and private security. They also used a range of fake entities—like Circle Society, Bitcoin Wealth Management, and Omicron Trust—to lend credibility to the scam.
Authorities revealed that Mazzotta operated under several aliases, including Anthony, Delta Prime, and Director Vinchenzo, while Saffron used names like David Gilbert, The Blue Wizard, and Bitcoin Yoda. Mazzotta also allegedly helped destroy evidence at Saffron’s apartment after the latter’s indictment in June of 2022, including smashing an iPad and falsifying documents to hide his involvement.
Saffron has remained in custody since August of 2023, faces multiple serious charges and a potentially lengthy prison term.
Shirt Sparks Trial Controversy
During his ongoing trial, Roman Storm found himself at the center of controversy, not just for the serious charges he faces but also for a T-shirt he wore at a crypto event in 2019.
The shirt featured a washing machine graphic and the phrase “I keep my Ethereum clean with Tornado cash.” It was pointed out by prosecutors as symbolic of the platform's role in laundering illicit funds.
Roman Storm wearing his controversial Tornado Cash shirt
Assistant US Attorney Kevin Mosley argued that Storm knowingly continued to operate Tornado Cash after realizing it was being used by criminals, and used the shirt as evidence of his intent. Storm’s defense team dismissed the shirt as a tasteless meme, and brushed it off as a joke, not an admission of wrongdoing.
Storm is currently facing charges of money laundering, operating an unlicensed money transmitter, and conspiracy to violate US sanctions. Only time will tell if the shirt will impact the jury’s perception of Storm’s intent.
