Samourai Wallet Co-Founder Sentenced to 4 Years for $237 Million Money Laundering Scheme

William Lonergan Hill, the 67-year-old co-founder of the controversial Bitcoin mixer Samourai Wallet, has been sentenced to four years in prison by a U.S. court. The conviction stems from charges of operating an unlicensed money transmitting business and facilitating the laundering of an estimated $237 million in illicit funds. While the charges were severe, the court acknowledged Hill’s advanced age and recent autism diagnosis, leading to a sentence slightly below the maximum statutory penalty.

The Charges Against Samourai Wallet

Prosecutors painted Samourai Wallet, often touted as a “privacy tool,” as a critical conduit for criminals to obscure the origins of their ill-gotten gains. Hill and his co-founder, Keonne Rodriguez, both pleaded guilty in July to “conspiracy to operate an unlicensed money transmitting business.” Rodriguez, facing similar charges, previously received the maximum sentence of five years in prison.

Judicial Compassion: Age and Autism as Mitigating Factors

During the sentencing in the U.S. District Court for the Southern District of New York, Judge Denise Cote emphasized the gravity of Hill’s offenses. However, she ultimately opted to “adjust” the sentence, citing his recent diagnosis of autism spectrum disorder and his advanced age as significant mitigating factors. Judge Cote stated:

“I agree that imprisonment will be more difficult for the defendant than for the average person. But for these factors, I would have sentenced him to 60 months.”

This decision highlights a rare instance where personal circumstances profoundly influenced a federal court’s judgment in a high-profile cryptocurrency-related crime.

The Defense: Bitcoin as “Catnip” for an Idealist

Roger Burlingame, Hill’s defense attorney, presented a detailed psychological argument, portraying his client as an individual with a “black-and-white” autistic worldview. For Hill, Burlingame argued, Bitcoin was akin to “catnip,” an irresistible force that resonated with his deep-seated idealism.

The defense posited that Hill was captivated by the “idealism and absolutism” of blockchain technology, viewing it as a noble endeavor to combat government overreach and avert an “Orwellian dystopia.” Furthermore, the Bitcoin community provided him with a profound sense of belonging previously absent from his life.

This unique perspective, the defense claimed, led to a skewed understanding of legal requirements. Hill allegedly believed that because Samourai Wallet operated as a “non-custodial wallet,” it was exempt from registration as a money transmitter under U.S. Financial Crimes Enforcement Network (FinCEN) regulations. This was described as a “pathetic childish idea” and a form of “magical thinking” characteristic of his autism.

The defense even requested “time served,” citing a three-month incarceration in a Portuguese prison last year as “torture” due to the forced social interactions, arguing it served as a sufficient deterrent.

Judge’s Stance on Morality and Accountability

Despite the compelling defense, Judge Cote repeatedly challenged the notion that Hill’s autism absolved him of moral responsibility. She pressed for clarification on whether Hill understood his actions were not merely illegal but also immoral. The judge firmly stated:

“It’s unrealistic to argue ‘no violation of the law.’ I completely disagree with the idea that ‘the defendant cannot distinguish right from wrong,’ or ‘autism prevents him from making moral judgments.'”

Hill’s Remorse and Acceptance

When given the opportunity to speak, the nearly 70-year-old Hill became visibly emotional, expressing profound regret for the distress caused to his wife, Sabrina, and his family.

“I once told myself that my work was for ‘freedom,’ but in fact, I was just finding rationalizations for my arrogance. I have learned a painful but necessary lesson from this experience, and I take full responsibility for my actions.”

The Final Sentence

Ultimately, William Lonergan Hill was sentenced to 48 months (four years) in prison, followed by three years of “supervised release.” This supervised release can be fulfilled while he resides in Lisbon, Portugal. Additionally, he was ordered to pay a fine of $250,000.

The judge also recommended that the time Hill spent detained in Portugal prior to his extradition to the U.S. — approximately 11 weeks — be credited towards his sentence, potentially reducing his remaining incarceration period.

Hill is mandated to report to prison voluntarily by January 2, 2026.