US Justice Department Hints at Change in Crypto Developer Prosecutions
A senior official from the US Department of Justice (DOJ) suggested a potential shift in how the agency prosecutes crypto developers, following the high-profile case of Tornado Cash co-founder Roman Storm. The comments come amid ongoing legal proceedings against Storm and growing debate over the criminalization of software development in the digital asset sector.
Justice Department Official Clarifies Approach
Speaking at a Wyoming summit on Thursday, Matthew Galeotti, acting assistant attorney general for the DOJ�s criminal division, discussed forthcoming updates to enforcement procedures affecting blockchain and cryptocurrency cases. While Galeotti did not refer to Roman Storm by name, he directly addressed concerns echoing those in Storm�s criminal case, which centers around allegations of operating an unlicensed money transmitter business.
Galeotti stated, �Our view is that merely writing code, without ill intent, is not a crime. Innovating new ways for the economy to store and transmit value and create wealth, without ill intent, is not a crime.� He emphasized that the department would focus prosecution on individuals who knowingly engage in crimes such as fraud, money laundering, or sanctions evasion.
Storm�s Case and Recent Verdict
Roman Storm was indicted in August 2023 on charges of conspiracy to commit money laundering, operating an unlicensed money transmitter, and violating US sanctions. In August, a verdict found Storm guilty on a single count related to operating an unlicensed money transmitter. The jury could not reach a decision on the other charges, leaving the prospect of a retrial uncertain. No sentencing hearing has been scheduled at this time.
Supporters of Storm and other developers have argued that �writing code is not a crime,� a sentiment Galeotti echoed. He clarified that developers contributing to open-source projects, without intent to aid criminal activity or join a conspiracy, should not face criminal liability. Galeotti added that evidence showing software is decentralized and only automates peer-to-peer transactions�where no third-party has custody over assets�could exempt a situation from further charges.
Industry Reaction and Policy Implications
The comments from the DOJ official were well-received at the American Innovation Project summit, which advocates for digital asset innovation. Legal experts note that while Galeotti�s remarks do not guarantee an end to legal proceedings against Storm, they signal a potential policy shift. The guidance follows an April statement by Deputy Attorney General Todd Blanche discouraging the use of prosecution as a regulatory tool.
The crypto sector continues to follow developments in the Tornado Cash case closely. Any official changes in DOJ policy could set new standards for enforcement actions regarding decentralized technology and open-source software creation.
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