The Department of Justice announced that it was taking action against the founders and CEO of Samourai Wallet, alleging that it operated as a “cryptocurrency mixing service.”

Samourai’s CEO Keonne Rodriguez and CTO William Lonergan Hill were both arrested on Wednesday. 

The wallet startup, founded in 2015, had offered a series of privacy-enhancing features designed to obfuscate the source of funds — tools that prosecutors say enabled criminal activity. The DOJ alleges that Samourai Wallet executed over $2 billion in transactions unlawfully and “laundered over $100 million in criminal proceeds.”

Hill was arrested in Portugal, and US authorities are seeking an extradition….

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