Episode Overview

Podcast: Watchman Privacy
Host: Gabriel Custodiet
Guest: Keonne Rodriguez (Co-Founder, Samurai Wallet)
Episode: 210 – “Keonne Rodriguez: Going to Prison for Privacy”
Date: November 29, 2025

This powerful episode centers on Keonne Rodriguez, the co-founder of Samurai Wallet—a privacy-focused, non-custodial Bitcoin wallet—who was recently sentenced to five years in federal prison. Gabriel and Keonne dig into the legal ordeal, the chilling raid on his home, the broader implications for privacy developers, and the personal financial and emotional toll. The conversation provides both a personal and systemic look at how technological privacy intersects with an increasingly hostile regulatory environment.

Key Discussion Points & Insights

Samurai Wallet and the “Crime” in Question

• Nature of Samurai Wallet:

  • Samurai Wallet is a non-custodial wallet: “you download the software, you have a seed phrase generated for you and therefore you are in control of your funds… the people who run the software are not in control of your funds.” (01:20)
  • Keonne and co-founder Bill were convicted of “conspiracy to running an unlicensed money transmitting business.” Gabriel frames this as “absurd… if you understand how this is architected.” (01:20)

• Initial Silence and Speaking Out Now:

  • Keonne explains he couldn’t speak for 18–19 months due to the ongoing legal case: “The best rule of thumb is just keep quiet. Now that I've been sentenced, I feel like it's safer for me to say my piece…” (02:17)
  • He emphasizes the loss of his voice and the media’s narrative: “A lot of people speaking about me... and to not being able to say your piece… it's pretty tough.” (02:17)

The Raid – Militarized Response

• Experience of the FBI Raid:

  • At 5 a.m. on April 24, 2024, Keonne’s rural home was raided by 40–50 armed FBI agents, with “an armored vehicle,” “red and blue flashing lights,” drones, and “laser sights… pointed at” him and his wife. (06:16)
  • Keonne: “I’m a software developer with no history of any violence. I don’t have a criminal record. There was no intelligence to believe that there was a danger.” (10:59)

• No Prior Warning from Authorities:

  • Unlike typical white collar investigations, there was no prior contact: “None of that happened… straight escalation right from the get go.” (04:34)

• Emotional & Familial Impact:

  • Detailing his wife’s temporary detainment and the overwhelming force, Keonne underscores the trauma and overreach: “It was all quite over the top.” (11:38)

Legal Ordeal and House Arrest

• House Arrest Conditions:

  • Keonne describes the severity and grading of federal house arrest:
    • Home incarceration (“most restrictive – can’t leave at all”)
    • Home confinement (leave only for pre-approved errands, 4hrs/wk)
    • Curfew (allowed out during certain hours) (12:28)
  • His bail jumped from $25K to $1 million, secured with family property and retirement funds. “I was on [home incarceration] for quite a long time. That was pretty tough.” (12:28)

• Jurisdictional Issues:

  • Although living in Pennsylvania, he was indicted out of the Southern District of New York, a court notorious for aggressive prosecutions: “They believe they are… the preeminent U.S. attorney’s office... nicknamed the Sovereign District of New York.” (17:59)

Deciding to Take a Plea Deal

• Broken System:
  • Keonne explains the reality: “You have this vision… present your evidence… truth will come out and win. That almost never happens.” (19:47)
  • After a judicial change to Judge Cote (“a harsh sentencer”), their motions (including to dismiss the indictment) weren’t heard. “She says, I’ve read the motions… I’m going to deny those motions. Let’s set up a schedule for trial. That was it.” (19:47)
  • Facing up to 25 years vs. 5 years in the deal, plus over $1M in legal debt already: “It just made sense… to take the deal.” (24:11)

Financial Ruin and Support

• Complete Financial Devastation:
  • The government couldn’t seize their Bitcoin, but issued a court order barring them from “any bitcoin transactions.”
  • Legal defense led to $2M+ in personal debt; additionally, the U.S. government demanded “the lifetime earnings of Samurai Wallet,”—$6.3M in Bitcoin—and a $250,000 fine “accruing interest” during incarceration. (25:57, 27:23)
  • Donations to support Keonne's and Bill's families now go to billandkeone.org. (29:36)

Broader Privacy and Crypto Implications

• Precedent for Others:

  • “Anyone who’s building… anything that threatens the state’s desire to have total transparency into your finances, should be quite worried about… Samurai Wallet and myself.” (33:05)
  • “Doesn’t matter where you are… servers were in Iceland, Bill was in Portugal, I was here. Everything was seized… they can get you quite easily.” (33:56)

• Warning to Privacy Developers:

  • “If you’re building privacy software for Bitcoin, you should be very worried and you should be taking steps to protect yourself. And I don’t mean that like, oh, use a VPN… I mean get legal representation immediately.” (34:57)

• Absurdity of the Charges:

  • Gabriel: “I mean… some people will use, bad people will use tools. That doesn’t mean you shut down the tool, doesn’t mean you shut down the roads… I’m not going to hold Toyota responsible for that.” (34:57)
  • Keonne clarifies: “The government’s contention was that because I made the software… and that it could be used by criminals and I knew that it was possible… that was… the object of the conspiracy.” (35:43)

Misconceptions and Criticisms Addressed

• Refuting Fee Fallacy:

  • “The government has already stated that… revenue and fees have nothing to do with being a money service business. They would have gone after us even if we collected no fees.” (45:54)
  • “If we go down the government’s line of thinking, a miner selecting transactions into a block is textbook money transmission… Bitcoin miners hopefully are preparing…” (46:30)

• On “Inviting Criminals” and Online Tone:

  • “We absolutely did not invite criminals to use our software… We may have talked trash on Twitter… I see that as a shitpost. If you can’t tell the difference, you shouldn’t be on the Internet.” (47:53)

• Chilling Effect on Free Speech:

  • “You shouldn’t have to self-regulate your speech. It’s wholly un-American… I hate to break it to you, we’re not far off here.” (47:56)

Memorable Quotes

• On Legal Reality:

  • “It’s really tough for someone who hasn’t gone toe to toe with the Department of Justice to truly understand how unjust the whole process is...” —Keonne (19:47)

• On Sentencing & Hostility:

  • “The judge was openly hostile… She brought up my libertarian leanings and ideologies as a negative thing.” —Keonne (41:04)

• On the Precedent Set:

  • “If you’re making anything remotely useful and to those ends you will be a target and they will come after you and it doesn’t matter where you are.” —Keonne (33:05)

Highlights & Notable Moments

• Chilling Raid Account:

  • “My wife is standing next to the door and there’s four or five laser sights directly on her chest” (06:16)
  • “Drones through the house… I’m a software developer with no history of violence…” (10:59)

• A Systemic Critique:

  • “They’re proud of the name Sovereign District of New York…” (17:59)
  • “You’re going into a fight with both hands tied behind your back…” (24:11)

• Deep Gratitude for Support:

  • “It’s a miracle, really… takes a load and stress off our backs.” (29:36)

Important Timestamps

• [01:20] – Samurai Wallet Explained; Legal Architecture
• [06:16] – Detailed Raid Account
• [12:28] – Life Under House Arrest; Bail Increases
• [17:59] – “Sovereign District of New York”; Venue Manipulation
• [19:47] – Courtroom Reality; Decision to Plead
• [25:57] – Financial Details; Asset Forfeiture
• [33:05] – Threats to Privacy Developers
• [41:04] – Hostility at Sentencing
• [45:54] – Addressing Fee & “Inviting Criminals” Myths

Ways to Support

• Website for Info, Donations, and Petition:
  • billandkeone.org (for donations to families, petitions for pardon, and contact/letter info)
• Call to Action:
  • “If you are a bitcoiner I hope you will be sympathetic… give back because these are people in a vulnerable position.” (44:30)
  • “The executive branch is a check on an unjust judicial system… sign the petition.” (48:36)

Final Thoughts

This episode offers a sobering, personal view into the legal and existential risks facing privacy software developers in the US, exposing a system where due process and technical nuance are swept aside for punitive spectacle. Keonne’s story is not just about one person or one case—it is a warning shot for the entire privacy community and a rallying call for support and solidarity.

Notable Quote for Reflection:

“If you’re building privacy software for Bitcoin, you should be very worried and you should be taking steps to protect yourself. And I don’t mean that like, oh, use a VPN… I mean get legal representation immediately.”
—Keonne Rodriguez (34:57)

For donations, petition, and future updates, visit billandkeone.org.
For further discussion or to write to Keonne and Bill, the site will post details as they become available.