Samourai Wallet Co-Founder Sentenced to Four Years for Unlicensed Money Transmitting
William "Bill" Hill, a co-founder of the privacy-focused Samourai Wallet, has been sentenced to four years in prison for operating an unlicensed money transmitting business. Prosecutors alleged the service facilitated the laundering of at least $237 million in illicit funds. The sentence was handed down by District Judge Denise Cote in the Southern District of New York.
Key Takeaways
- Samourai Wallet co-founder Bill Hill received a four-year prison sentence.
- He was convicted of conspiracy to operate an unlicensed money transmitting business.
- Prosecutors claimed the wallet was used to launder $237 million.
- Mitigating factors, including Hill's autism diagnosis and advanced age, influenced the sentence.
Sentencing Details
District Judge Denise Cote sentenced the 67-year-old Hill to 48 months in prison, a reduction from the statutory maximum of five years. This sentence was influenced by several mitigating factors, notably Hill's recent autism diagnosis and his advanced age. Judge Cote acknowledged that prison would be particularly challenging for Hill, stating she would have imposed a 60-month sentence otherwise.
Hill's defense attorney argued that Hill's autism explained his actions and his belief that Samourai Wallet's operations were legal. The defense contended that because non-custodial wallets were not explicitly required to register with the Financial Crimes Enforcement Network (FinCEN) as money transmitting businesses, Hill operated under a misapprehension of the law. His lawyer described this as a "magical-thinking, autistic view of the world."
Legal Arguments and Judicial Response
Hill's lawyer also highlighted his client's sensitivity and the extreme difficulty he would face in a prison environment, suggesting that his three-month detention in Portugal prior to extradition was sufficient punishment. However, Judge Cote pushed back on the notion that Hill did not understand the moral implications of his actions, stating, "There’s a way of arguing that no law was violated — that’s just not true."
When addressing the court, Hill expressed remorse, acknowledging his hubris and the negative impact his prosecution had on his family. He stated he had learned a "painful but essential lesson" and took "full responsibility for my actions."
Additional Penalties and Next Steps
In addition to the prison sentence, Hill was ordered to pay a $250,000 fine and will serve three years of supervised release. He is permitted to serve this supervised release from Lisbon, Portugal, where he resides with his wife. Judge Cote indicated she would recommend credit for the time Hill already served in Portugal, potentially reducing his sentence by approximately 11 weeks. Hill is required to self-surrender to begin his sentence by January 2, 2026.
This sentencing follows that of fellow Samourai Wallet developer Keonne Rodriguez, who received the maximum five-year sentence for the same charges.