The Samourai Wallet Story
One Bitcoin developer is walking into federal prison today for writing code.
This is the story of how the DOJ weaponized the justice system to destroy them. And why Trump might be their only hope.
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April 24, 2024.
The day that changed everything.
50 armed FBI agents raided Keonne Rodriguez's home.
He was being charged with conspiracy to commit money laundering AND conspiracy to operate an unlicensed money-transmitting business.
His business partner, Bill Hill was also arrested that day. Both were the creators of the Samourai Wallet, a non-custodial Bitcoin wallet that let people have privacy. And had been operating it LEGALLY since 2015.
The wallet itself was open source and NEVER held custody of user’s Bitcoin or the user’s funds.
What put a target on their back was one of the privacy features they offered, which was a "CoinJoin" called Whirlpool. This, mixes your Bitcoin with others and makes the Bitcoin harder to track.
We already do this with cash because it’s like withdrawing cash from an ATM.
The bank knows you took out $100, they just don't know what you do with it after.
That's all it did.
Here is where it gets interesting. They were being charged with conspiracy to operate an unlicensed money-transmitting business.
BUT, the FinCEN (the money transmission regulator) was crystal clear in 2013 and 2019:
"No custody = not a money transmitter."
Since Samourai never touched user funds, they were following the law.
The DOJ also charges them with conspiracy to commit money laundering, because some “bad” people used their services. Not because they money laundered themselves.
In total they were facing 25 YEARS in prison because ALLEGEDLY over $237 million were mixed illegally/ laundered through the wallet.
So, their lawyer immediately files motions.
Here's what they filed:
1. Brady Violation Motion (DOJ hid exculpatory evidence)
2. Motion to Dismiss (even if facts are true, not illegal as matter of law)
3. Motion to Sever (separate their defenses)
4. Amicus Briefing (let civil liberties experts weigh in)
Then something insane happens...
Two days before arguing their motions, the judge gets SWITCHED.
The original judge was Richard M. Berman, and the NEW judge is Denise Cote.
Former head of criminal division at SDNY. Notoriously known for being pro-prosecutor and an extremely harsh sentencing.
Red flags everywhere.
Remember all the motions they filed? Well the new judge, Cote, DENIED all of them.
Without oral argument, written opinion, explanation… Nothing.
This is when they realized: the jury would never see the evidence that could save them.
One of the biggest pieces of evidence was The Brady Violation, because 6 months BEFORE indicting them, the DOJ asked FinCEN: "Is Samourai breaking the law?"
FinCEN's answered "NO. Because they don't take custody, so they're not money transmitters."
The DOJ HID this for over a year, this piece of information that was KEY, was completely dismissed by the judge and not to be presented in court….
SO, let’s recap the regulator who ISSUES money transmitter licenses told the DOJ they didn't need one.
The DOJ, didn’t care, and charged them anyway. Then they buried the evidence.
And the judge refused to let the jury hear that. This is what weaponized prosecution looks like.
The math became impossible:
25 years if they lose at trial vs. 5 years with a plea deal.
They were already $2.5M in debt to lawyers, $1.3M in debt to friends.
They were fighting against the DOJ’s unlimited resources against a biased judge controlling what the jury sees.
They’re best option was to take the plea.
This meant:
Keonne Rodriguez: 5 years
Bill Hill: 4 years
Both pleaded guilty to "conspiracy to operate an unlicensed money transmitting business."
The business they were told by regulators they didn't need a license for.
But wait, it gets worse.
As part of the plea, they forfeited $6 MILLION in Bitcoin.
Trump issued an executive order: All forfeited Bitcoin goes to the Strategic Bitcoin Reserve.
SDNY sold it immediately for fiat, which is a direct violation of Trump's order.
Second violation:
In April 2025, Deputy AG Todd Blanch issued a memo:
"Do NOT prosecute software developers for actions of end users."
Explicitly mentions mixers and tumblers. SDNY ignored it AGAIN.
Clearly, they don't care what Trump says.
But there is a slight sliver of hope. On December 16, 2025.
A reporter asked Trump about the case.
Trump said he had heard about it and turned to Pam Bondi and asked him to look at it, giving 37 seconds of his time.
TODAY, December 19, 2025
Keonne Rodriguez reports to prison for writing code right before Christmas.
The precedent this sets is TERRIFYING:
If wallet developers are money transmitters...
Then Bitcoin MINERS are money transmitters.
Then they need KYC/AML on every transaction.
This chokes out crypto entirely.
This is the war on financial privacy.
And we thought Operation Chockepoint 2.0 was over…
There's a petition: billandkeonne.org
If you believe in freedom of code: Sign it. Share it. Make noise.
This isn't just about Keonne and Bill, this is about whether developers are safe to build in America.