DOJ Greenlights Innovation: Code Without Malice No Longer a Crime

The U.S. Department of Justice (DOJ) has taken a definitive step toward reframing its approach to the cryptocurrency sector, stating that developers of decentralized technologies who write code without criminal intent will not be pursued for violations related to unlicensed money transmission. This shift comes after a high-profile conviction of a Tornado Cash co-founder and amid a broader recalibration of enforcement priorities under the leadership of President Donald Trump’s administration. Acting Assistant Attorney General Matthew Galeotti, representing the DOJ’s criminal division, emphasized that “merely writing code without ill intent is not a crime” during remarks at a digital asset summit in Wyoming [1].

The DOJ’s stance signals a departure from prior enforcement actions that saw prosecutors pursuing software developers for alleged violations of money transmission laws. Galeotti clarified that the department will not use criminal statutes to create a de facto regulatory framework for the digital asset industry and will not treat software developers as de facto financial intermediaries unless there is evidence of specific intent to facilitate criminal activity [2]. This is a significant shift, particularly for decentralized platforms like Tornado Cash, which enable users to obscure the origins of cryptocurrency transactions. In a recent trial, Roman Storm, a co-founder of Tornado Cash, was found guilty of conspiracy to operate an unlicensed money transmitting business but the jury deadlocked on charges of money laundering and sanctions evasion [1].

The Justice Department’s new approach appears to align with broader regulatory changes in the crypto space, including the dissolution of the National Cryptocurrency Enforcement Team and the administration’s efforts to promote the U.S. as a global hub for digital assets. Galeotti reiterated that the DOJ will focus on holding accountable those who knowingly assist in criminal activities, including money laundering, sanctions evasion, and fraud, but will not target developers whose software is decentralized and does not involve custody of user assets [3]. This guidance was outlined in an April memo from Deputy Attorney General Todd Blanche, which urged prosecutors to avoid using criminal charges as a tool for regulation [4].

The policy change has been welcomed by industry groups, including the DeFi Education Fund, which sees it as a validation of long-standing arguments that developers should not be held responsible for third-party misuse of their code. Galeotti also acknowledged that the DOJ will continue to pursue bad actors who exploit digital assets for illegal purposes, including cybercrime and fraud. Recent enforcement actions include the prosecution of a China-based money laundering ring linked to crypto scams and a $225 million civil forfeiture tied to cryptocurrency fraud [5].

The DOJ’s clarification is expected to provide legal clarity for developers and reduce the chilling effect that had previously discouraged innovation in the crypto space. However, it remains to be seen how this policy will be applied in ongoing and future cases, particularly those involving platforms like Tornado Cash. While Galeotti did not explicitly state whether a retrial of Roman Storm is expected on the remaining charges, his remarks suggest a more lenient approach for developers who contribute to open-source projects without criminal intent [4].

Source:

[1] U.S. DOJ to back off money transmitter cases in shift backed by crypto - Reuters (https://www.reuters.com/sustainability/boards-policy-regulation/us-doj-back-off-money-transmitter-cases-shift-backed-by-crypto-2025-08-21/)

[2] U.S. Justice Department Official Says Writing Code Without ... (https://www.coindesk.com/policy/2025/08/21/u-s-justice-department-official-says-writing-code-without-bad-intent-not-a-crime)

[3] Crypto Code Creators Safe: DOJ Eases Regulations On ... (https://www.mitrade.com/insights/news/live-news/article-3-1059724-20250822)

[4] US DOJ Official Signals Department Opposes Retrial For ... (https://cointelegraph.com/news/justice-department-policies-writing-code-roman-storm-retrial)

[5] Acting Assistant Attorney General Matthew R. Galeotti ... (https://www.justice.gov/opa/speech/acting-assistant-attorney-general-matthew-r-galeotti-delivers-remarks-american)