# Samourai Wallet accused of being involved in a $237 Money Laundering case, privacy tool faces regulatory storm

A founder of a cryptocurrency privacy tool has fallen. Keonne Rodriguez, co-founder of Samourai Wallet, was sentenced to 5 years in prison for illegally engaging in remittance business and Money Laundering conspiracy, and must forfeit 6.3 million USD.

Key data: The prosecution alleges that this wallet facilitated **over $237 million in illegal transactions**, involving drug trafficking and other criminal activities.

**Why is this wallet so powerful?**

Whirlpool and Ricochet are two core features – mixing your coins with those of other users and then randomly dispersing them, making it virtually impossible for blockchain analysis tools to trace the money from where it came to where it goes. This is a godsend for those seeking financial privacy, but a nightmare for regulatory authorities.

**The Legal Storm is Here**

The U.S. Department of Justice believes that Rodriguez is deliberately creating tools for criminals, and the judge even criticized him for "having no remorse and not realizing the harm he has caused."

This case is almost identical to the situation with Tornado Cash—both involve the prosecution of privacy tool developers. Now there’s a question on the table: **Should developers of a neutral, open-source tool be held responsible for the illegal actions of their users?**

Privacy advocates complain that this will scare off other developers and stifle innovation. But the stance of the regulatory authorities is also clear: if you know the tools will be used for crime and still promote them, that makes you an accomplice.

**The Contradictory Reality:** Centralized exchanges like Binance and Coinbase are aware that some people use them for Money Laundering, but the penalties are relatively lenient; in contrast, those who create privacy tools are given heavy sentences. Doesn't this logic seem a bit off?

**Industry Insight:** The old topic of privacy vs compliance has now come with a bloody lesson. Developers need to think clearly - the legal risks of creating privacy tools are real.