Justice Clarifies: Code Without Criminal Intent Isn't a Crime

The U.S. Department of Justice (DOJ) has announced a shift in its enforcement strategy regarding digital asset developers, signaling a move away from prosecuting individuals solely for writing code without criminal intent. This policy was underscored by Matthew Galeotti, acting assistant attorney general for the DOJ’s criminal division, during a speech at the American Innovation Project (AIP) Summit in Jackson, Wyoming. Galeotti emphasized that the DOJ would not pursue charges under 18 U.S.C. § 1960—pertaining to unlicensed money transmission—against developers whose software is genuinely decentralized and does not involve custody or control of user assets. “Merely writing code without ill intent is not a crime,” Galeotti stated, reiterating that innovators should not face prosecution for the misuse of their tools by third parties [1].

Galeotti’s remarks followed the recent conviction of Roman Storm, co-founder of Tornado Cash, who was found guilty of conspiracy to operate an unlicensed money transmitting business. While the conviction was upheld on that charge, the jury failed to reach a consensus on money laundering and sanctions evasion counts. Galeotti’s speech sought to provide clarity to the industry, reinforcing that the DOJ would not use criminal statutes to impose regulatory frameworks on the digital assets sector. “The department will not use indictments as a lawmaking tool,” he said, addressing concerns that developers could be prosecuted for tools used in ways they did not intend [2].

The DOJ’s updated stance aligns with a broader effort to avoid overregulation through criminal enforcement. Deputy Attorney General Todd Blanche’s April 7 memorandum outlined a directive for federal prosecutors to refrain from initiating cases that would create a regulatory framework for digital assets, leaving that responsibility to dedicated regulatory bodies. This shift appears to have influenced the DOJ’s decision to drop specific enforcement strategies against decentralized protocols. The AIP, which hosted the summit, is a nonprofit backed by crypto firms such as Coinbase and Uniswap Labs, and has been instrumental in advocating for industry-friendly policies [3].

The implications of this policy shift are significant, especially for developers whose tools have been exploited for illicit activities. Galeotti’s speech explicitly addressed the industry’s concerns about being held responsible for third-party misuse of their protocols. “Developers of neutral tools with no criminal intent should not be held responsible for someone else's misuse of these tools,” he said, emphasizing that those who violate criminal law should be prosecuted, not the creators of the tools [4]. This sentiment was echoed by Amanda Tuminelli of the DeFi Education Fund, who stated that the DOJ’s acknowledgment affirms the advocacy efforts of the crypto industry.

Legal experts and advocacy groups have welcomed the DOJ’s clarification as a step toward a more balanced regulatory approach. Jake Chervinsky, legal officer at Variant, noted on X that the DOJ’s stance could lead to the dismissal of future cases like those against Storm, who has already expressed intent to appeal his conviction. While the DOJ’s new policy does not automatically invalidate past convictions, it signals a more deliberate approach to future enforcement, particularly in cases where the software is genuinely decentralized [5].

The DOJ’s announcement also comes at a pivotal time as Congress works on the Responsible Financial Innovation Act of 2025, which includes provisions to protect developers from prosecution based on the misuse of their code. The Department of Justice’s policy shift is expected to influence legislative efforts, reinforcing the industry’s push for clarity and legal protection for software developers in the digital asset space [6].

Source:

[1] title1 (https://finance.yahoo.com/news/devs-behind-truly-decentralised-protocols-200037400.html)

[2] title2 (https://www.coindesk.com/policy/2025/08/21/u-s-justice-department-official-says-writing-code-without-bad-intent-not-a-crime)

[3] title3 (https://cointelegraph.com/news/justice-department-policies-writing-code-roman-storm-retrial)

[4] title4 (https://cryptobriefing.com/doj-shipping-code-not-a-crime-crypto-open-source/)

[5] title5 (https://www.defieducationfund.org/post/defi-debrief-3)

[6] title6 (https://www.gibsondunn.com/digital-assets-hub/)