Key Takeaways:

Keonne Rodriguez, associated with Samourai Wallet, pleaded not guilty to charges including money laundering and operating an unlicensed money-transmitting business, during a court session in New York on April 29.
Rodriguez was granted bail at $1 million, with strict conditions including travel restrictions within New York and Pennsylvania, home confinement, location monitoring, and prohibitions on cryptocurrency transactions without court approval.
The U.S. crackdown on cryptocurrency mixers intensifies, with Samourai Wallet’s servers seized and debates heightening within the industry, reflecting broader regulatory scrutiny on platforms accused of facilitating illegal activities.

Keonne Rodriguez, a pivotal figure associated with the cryptocurrency mixer Samourai Wallet, has formally denied charges leveled against him by the United States Justice Department.

Charged with money laundering among other offenses, Rodriguez made his plea in a recent court session held on April 29 at the U.S. District Court for the Southern District of New York.

JUST IN: Samourai Wallet Co-Founder Keonne Rodriguez Pleads Not Guilty, Released on $1M Bond

Rodriguez will reportedly remain on house arrest in Pennsylvania until his trial 😳 pic.twitter.com/yUbmOJ5lK8
— Simply Bitcoin (@SimplyBitcoinTV) April 30, 2024

Following his plea of not guilty to charges including conspiracy to operate an unlicensed money-transmitting business, Rodriguez was granted bail.

The Assistant U.S. Attorneys have set the bond at $1 million.

Under the conditions of his release, Rodriguez is restricted to traveling between certain parts of New York and Pennsylvania, barring periods when he must remain confined to his home in Harmony, Pennsylvania.

CRYPTO CRIME BEAT: In DOJ Prosecution of Samourai Wallet crypto-mixed, Keonne Rodriguez Now Out on $1 Million Bond, William Hill Arrested in Portugal, to be extradited to SDNY – Inner City Press story: https://t.co/mEuFJ2R787 pic.twitter.com/zl0uLp7XOl
— Inner City Press (@innercitypress) April 29, 2024

Additionally, he is mandated to wear a location monitoring device.

As part of his bail terms, Rodriguez is also barred from engaging in any cryptocurrency transactions or providing services for Samourai Wallet without court approval.

These stringent conditions reflect the court’s careful approach to handling cases involving significant financial implications and potential risks.

In related developments, William Hill, the Chief Technology Officer of Samourai Wallet, also faces similar charges.

Hill was arrested on the same day as Rodriguez but has yet to make a court appearance in the U.S. due to his arrest in Portugal, with extradition procedures currently underway.

Rodriguez is scheduled for another court appearance on May 14.

The situation surrounding Samourai Wallet has escalated following the U.S. government’s intensified crackdown on cryptocurrency mixers.

Samourai Wallet's Keonne Rodriguez pleads not guilty to money laundering, transmitting charges https://t.co/Z88S5zeGFC
— The Block (@TheBlock__) April 29, 2024

These platforms, according to the U.S. authorities, have been exploited for money laundering by various criminal groups, including hackers and terrorists.

This has led to the seizure of Samourai Wallet’s servers and domain in Iceland and stirred significant debate among industry leaders and lawmakers.

The U.S. Treasury Department’s Office of Foreign Asset Control has already taken action against other mixers like Blender and Tornado Cash, facing widespread scrutiny and criticism from many within the cryptocurrency community.

Both Rodriguez and Hill potentially face up to 20 years in prison if convicted for money laundering, with an additional five years possible for the conspiracy charge related to the operation of an unlicensed money-transmitting business.