DOJ Backs Developers: Policy Shift After Tornado Cash Case

- DOJ states code writing without criminal intent isn’t prosecutable. - Acting Assistant Attorney General Galeotti clarifies policy after Roman Storm’s controversial conviction. On August 21, 2025, The Block reported a pivotal shift in the U.S. Department of Justice’s (DOJ) approach to digital assets and decentralized software development. Acting Assistant Attorney General Matthew J. Galeotti clarified the DOJ’s position, stating the department will not prosecute individuals for writing software if they lack criminal intent. This announcement follows increased scrutiny over the role of developers, particularly after the contentious conviction of Tornado Cash creator Roman Storm. Galeotti elaborated on the application of 18 U.S.C. § 1960, the federal statute governing unlicensed money transmitting businesses. He emphasized that the DOJ will not pursue charges against individuals for creating or operating decentralized software platforms that support peer-to-peer transactions without taking custodial control of user assets. However, he reaffirmed the department will continue to prosecute crimes such as fraud, money laundering, or sanctions evasion facilitated by such technology. A court convicted Roman Storm of conspiracy to operate an unlicensed money transmitting business, although a jury deadlocked on more severe allegations, including conspiracy to commit money laundering and sanctions violations. The case has drawn criticism from legal figures within the digital assets space. On August 21, 2025, chief legal officer at Variant Fund Jake Chervinsky stated on X (formerly Twitter), "Justice for Roman means dropping the case," arguing the conviction contradicts the non-prosecutable criteria Galeotti identified. Galeotti’s comments mark a departure from the aggressive enforcement tactics of previous administrations, as the DOJ shifts its focus to establishing clear criminal intent rather than using federal criminal statutes as a regulatory tool. This change signals a willingness to foster innovation while upholding the rule of law.