President Donald Trump said he would XEM pardoning Keonne Rodriguez, CEO of the privacy-focused Bitcoin wallet Samourai, who was sentenced last month to five years in prison for money laundering.
This statement sparked debate about security technology in the cryptocurrency field. It also led many to question whether other developers who have been convicted, such as Roman Storm of Tornado Cash, could receive similar leniency from the President.
Calls for further amnesty met with disappointment from the market.
During a press conference on December 15, 2023, a reporter asked Trump about the Rodriguez case, noting that the case began under the Biden administration but was continued by the Justice Department, which he controls. Trump responded, “I’ve heard about it. I’ll XEM it.” The president also said he would reassess the case after the reporter mentioned the widespread support within the crypto community for the pardon.
Rodriguez, 37, and co-founder William Lonergan Hill, 67, were convicted of operating a cryptocurrency mixing service. Prosecutors said the two helped launder more than $237 million from illicit activities. Rodriguez received a five-year prison sentence, Hill received four years, and both were fined $250,000.
This news has received mixed reactions. Some supporters hope it will create momentum for more crypto-friendly policies to emerge. One user, X , even called for an extended amnesty for Do Kwon , the founder of the Terra/Luna platform that later collapsed.
However, opposing views also suggest that the cryptocurrency market under Trump experienced several sharp declines. Since he took office, many major coins have plummeted by over 70%.
The prosecution's argument refutes the notion that "developers are simply people who write code."
The U.S. Department of Justice presented evidence showing that Rodriguez and Hill were not simply developers of security tools. According to the sentencing announcement on November 19, 2023 , prosecutors demonstrated that the two founders actively promoted their service to criminal elements.
Hill is accused of promoting Samourai on Dread, a darknet forum, directly responding to a user seeking a “safe method to launder dirty BTC ” and promoting Samourai’s Whirlpool service as superior to other options. Rodriguez is also alleged to have encouraged Twitter hackers in 2020 to transfer stolen funds through his mixing service, even expressing disappointment when they chose a different competitor.
The biggest drawback is that Rodriguez himself described the money-mixing operation as "money laundering for bitcoin" in WhatsApp messages. At the same time, the company's marketing materials also admitted to targeting "Black/Gray market participants" transferring money from "illegal activities."
According to prosecutors, illicit funds channeled through Samourai originated from drug trafficking, the black market, cybercrime, fraud, sanctions, contract killings, and even pedophilia websites.
Broader meaning
This case has once again reignited the debate about the responsibility of developers when users utilize decentralized platforms. Privacy advocates argue that this conviction will set a dangerous precedent for the open-source development community, while law enforcement maintains that actively instigating offenders crosses the legal boundary.
Online, many people are discussing whether Roman Storm, the developer of Tornado Cash, who was charged with similar offenses in August 2023, has a chance of receiving clemency. Storm was found guilty of conspiracy to operate an unauthorized money transfer service. However, the jury could not reach a consensus on the more serious charges related to money laundering and violations of sanctions.
The U.S. Congress is still debating regulations for cryptocurrencies . Lawmakers have introduced several related bills aimed at clarifying regulations for security-enhancing technologies, but none have yet been enacted into law.
President Trump has pardoned several prominent figures in the crypto industry, including former Binance CEO Changpeng Zhao and Silk Road founder Ross Ulbricht. This has set a precedent, leading many to predict further leniency decisions for the sector in the future.
