Two co-founders of the Bitcoin privacy wallet Samourai Wallet are headed to prison this week. Keonne Rodriguez was sentenced to five years, and William Lonergan Hill to four years, for their roles in the crypto protocol. Now the project's co-founder is appealing for donations to cover $2 million in legal fees.
The sentences
Rodriguez and Hill were found guilty earlier this year of charges tied to operating Samourai Wallet, a tool that lets users mix bitcoin to obscure transaction histories. The court handed down five and four years respectively. The length of the sentences caught many in the crypto community off guard — it's one of the harshest outcomes for a privacy-focused software developer in recent memory.
The legal fund appeal
Shortly after the sentencing, one of the co-founders posted a plea for financial help. The goal: raise $2 million to cover legal fees from the trial and post-conviction proceedings. The appeal is directed at supporters who believe in financial privacy. It's not clear how much has come in so far, but the team is asking for donations in bitcoin and other cryptocurrencies.
What this means for privacy tools
The case has rattled developers building similar privacy-enhancing software. Samourai Wallet's mixing features have been under scrutiny for years, and this sentencing signals that U.S. prosecutors are willing to pursue jail time for those behind such tools. The outcome could push some projects to shut down or move offshore.
The legal fund appeal is ongoing. No further court dates have been announced, but the co-founders are expected to begin serving their sentences in the coming weeks.
