- The U.S. Department of Justice (DOJ) stated it does not plan to prosecute crypto software developers who act without criminal intent.
- DOJ official Matthew Galeotti assured industry members that writing code is not a crime unless there is intent to facilitate money laundering.
- Recent convictions of crypto developers include Roman Storm of Tornado Cash and the creators of Samourai Wallet.
- The DOJ clarified that prosecutors will only use certain criminal codes against developers if there is evidence of willful legal violations.
- Industry advocates welcomed these remarks, emphasizing continued legislative efforts to protect crypto software developers.
A senior official from the U.S. Department of Justice told an audience in Wyoming on Thursday that the department does not intend to target digital asset software developers unless they have clear intentions of committing money laundering or related crimes. Matthew Galeotti, acting assistant attorney general for the DOJ’s criminal division, made this comment at an event organized by the American Innovation Project, addressing concerns after recent legal actions against crypto developers.
Galeotti explained that the department will not use federal criminal laws to create new regulations for the digital asset industry or use indictments as a method for lawmaking. He stated, “Merely writing code without ill intent is not a crime.” His comments followed courtroom cases where prosecutors convicted developers such as Roman Storm of Tornado Cash, who was found guilty of running an illegal money transmitting business, and Samourai Wallet creators, who pleaded guilty to a lesser charge.
Galeotti addressed the legal code involved in these convictions, saying the DOJ would only use it if there is “evidence that a defendant knew of the specific legal requirements and willfully violated it.” He said that cases involving truly decentralized software, which simply automates transactions between users and where no third party controls user assets, would not lead to charges under this code.
A recent DOJ memo issued by Deputy Attorney General Todd Blanche reflected a more cautious approach to prosecuting crypto cases, noting the disbandment of the national cryptocurrency enforcement team. This shift comes after prior administrations created what the memo called an “uncertain regulatory environment” for digital assets. However, the Southern District of New York continued prosecution in the Tornado Cash and Samourai Wallet cases.
Galeotti emphasized, “Developers of neutral tools with no criminal intent should not be held responsible for someone else’s misuse of these tools.” Industry advocates, such as Amanda Tuminelli of the DeFi Education Fund, welcomed the DOJ’s stance and highlighted ongoing efforts in Congress to strengthen protections for crypto software developers.
The final version of pending crypto market structure legislation, which could codify these protections, is still under discussion in the Senate. Readers can view the DOJ’s current position in the April memo and watch Galeotti‘s remarks here.
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