DOJ says writing code without criminal intent is not a crime

Acting Assistant Attorney General Matthew Galeotti told attendees at the American Innovation Project summit in Wyoming on August 21 that the Department of Justice will stop prosecuting software developers under money-transmission laws when they write code without criminal intent.

Galeotti leads the Justice Department’s Criminal Division. He said the DOJ would no longer use criminal charges to create regulations for the digital asset industry, adding that “writing code without ill intent is not a crime.”

The announcement comes weeks after a New York jury convicted Tornado Cash co-founder Roman Storm of operating an unlicensed money transmitting business. Prosecutors claimed Storm profited from the illegal use of the protocol. The jury could not reach an agreement on related money laundering and sanctions charges.

Galeotti explained that new charges under federal money transmission laws would not target software that is genuinely decentralized, automates peer-to-peer transactions, and gives no third party custody or control over user assets. Instead, prosecution will focus on individuals who knowingly commit crimes like money laundering, fraud, and sanctions evasion.

If a third party’s misuse violates criminal law, then that third party should be prosecuted, not the well-intentioned developer,

Galeotti said.

The policy change follows an April memo from Deputy Attorney General Todd Blanche. That memo stated the DOJ is not a regulatory body for digital assets and discouraged “regulation by prosecution.”

Under the Trump administration, the DOJ dismantled its crypto enforcement unit and reduced cases pursued by the U.S. Securities and Exchange Commission (SEC) in the crypto sector. The Responsible Financial Innovation Act of 2025, currently working through Congress, seeks to establish legal protections for developers of decentralized finance tools.

The previous DOJ approach had created concerns in the crypto community about developer liability and criminal exposure for writing code. The new policy addresses these concerns by distinguishing between developers who write code and users who may misuse that code for illegal purposes.