Samourai Wallet co-founder Keonne Rodriguez says inmates at FCI McKean have been told that he and about 70 other participants will be transferred to different facilities after a drug treatment program was deactivated. Rodriguez made the claim on X, adding that he had entered the program because completing it could reduce his sentence by up to a year.

The situation comes as Rodriguez—who is serving a five-year term for his role in an unlicensed money-transmitting business—continues to navigate prison transfers while his case remains entangled with broader U.S. policy debates over whether developers who do not control users’ funds can be treated as financial intermediaries.

Key takeaways

Rodriguez says FCI McKean deactivated a drug treatment program tied to sentence-reduction eligibility for him and roughly 70 other participants.
He reported that a prior transfer from FPC Morgantown to McKean proved far longer and harsher than expected, with travel that he said he was not allowed to do himself.
The federal government states Rodriguez and Samourai co-founder William Lonergan Hill transmitted more than $237 million in criminal proceeds through the service.
In Congress, the CLARITY Act framework aimed at protecting non-controlling crypto developers from certain money-transmission obligations has stalled after a Senate procedural vote failed.

FCI McKean program ended; another transfer expected

Rodriguez said on X that the warden at FCI McKean informed program participants that he and 70 others would be moved to facilities where treatment is still available. He framed the transfer as a setback to his attempt to continue the drug treatment program.

Rodriguez entered the program because completing it could reduce his sentence by up to a year, according to his account. With the program deactivated at McKean, the practical next question for investors and crypto builders is what this means for Rodriguez’s ability to stay on track for any sentence-reduction pathway—especially since transfers can disrupt schedules, eligibility, and continuity of care.

Rodriguez describes a harsher-than-expected transfer from Morgantown

In a letter published by The Rage, Rodriguez characterized his initial move from FPC Morgantown to McKean as the “absolute worst 30 days” of his life. He said his request to make the approximately four-hour trip himself was denied, and he described the process as far more drawn out.

According to Rodriguez, inmates leaving Morgantown were placed in ankle shackles and handcuffs attached to waist chains before being transported by bus to an airport and flown to the Federal Transfer Center in Oklahoma City. He said that once at the transfer center, he was held with prisoners from different security classifications and spent most of his time locked in a cell.

Rodriguez also wrote about the conditions at the Federal Transfer Center, including that he wondered whether the “all the circles of hell” were contained within the facility. He later said he was assigned a cell with an inmate serving a murder sentence and that he received only part of a foam mattress, leaving part of his body to rest on a metal bunk overnight.

Conviction and sentence: what prosecutors said Samourai did

Rodriguez is serving a five-year sentence after pleading guilty to conspiring to operate an unlicensed money-transmitting business. Cointelegraph previously reported on the case’s broader developments surrounding a petition and related legal efforts, including coverage that ties Rodriguez’s sentence to Samourai’s operation.

Separately, the U.S. Department of Justice said in a sentencing announcement that Rodriguez and co-founder William Lonergan Hill transmitted more than $237 million in criminal proceeds through the service. The government’s framing focused on the transmission of criminal funds rather than on any claim that users retained full control or that developers were outside the flow of money.

For readers following crypto policy, that legal characterization helps explain why the debate over “developer protections” is central to the sector’s risk outlook: it highlights the potential gap between how software is built (and who controls assets) and how prosecutors may describe the service’s economic function.

CLARITY Act pause leaves developer protections in limbo

Rodriguez’s case has unfolded alongside congressional efforts intended to reduce compliance risk for crypto developers who do not control users’ assets. Those efforts are reflected in the CLARITY Act framework, which has sought to clarify that non-controlling developers should not necessarily be treated as financial intermediaries subject to money-transmission requirements under the Bank Secrecy Act.

According to Cointelegraph’s coverage, the latest Senate CLARITY Act draft retained Blockchain Regulatory Certainty Act provisions designed to protect non-controlling developers from certain money-transmission obligations. However, the Senate failed to advance the CLARITY Act on Sept. 15 after a procedural vote fell short of the 60 votes needed to move the legislation forward.

That legislative stall matters to builders and businesses because it increases uncertainty around how federal agencies and courts could interpret developer involvement going forward—especially in cases where software tools, even without direct user asset control, are alleged to have facilitated illicit financial activity.

What to watch next

Rodriguez’s reported transfer after the deactivation of drug treatment at FCI McKean will likely be the immediate development to follow, because sentence-reduction eligibility can hinge on program continuity. At the same time, the broader policy question—whether the Senate will revive and pass the CLARITY Act to better define developer obligations—remains unresolved, leaving crypto firms to plan under continued legal ambiguity.