Acting Attorney General Todd Blanche has signaled a potential shift in the Justice Department’s approach to prosecuting software developers in the cryptocurrency space. Speaking at the Bitcoin 2026 conference, Blanche stated that developers not actively assisting third parties in criminal activities are unlikely to face charges. This clarification comes amid ongoing legal actions against developers of privacy-enhancing tools like Tornado Cash and Samourai Wallet.
Key Takeaways
- Acting Attorney General Todd Blanche indicated that developers who do not facilitate criminal acts using their software will not be investigated or charged.
- Blanche’s remarks were made in response to questions about the DOJ’s stance on cases involving Tornado Cash and Samourai Wallet developers, clarifying the department’s investigative strategy.
- The Tornado Cash developer Roman Storm was previously convicted of conspiracy to operate an unlicensed money transmitting business, though juries could not reach verdicts on money laundering and sanctions violation charges.
- Samourai Wallet co-founders also faced legal consequences for operating a bitcoin mixing service.
- Blanche emphasized that the DOJ has “fundamentally changed the game” regarding investigations into the virtual asset space, focusing on specific criminal activities such as sanctions evasion and money laundering.
The statements from Blanche are particularly significant given the legal complexities surrounding decentralized technologies and the varying interpretations of liability for developers. The recent case of Roman Storm, a developer for the crypto mixing service Tornado Cash, highlights this. While Storm was found guilty of conspiracy to operate an unlicensed money transmitting business, the jury was unable to reach a consensus on more serious charges, including conspiracy to commit money laundering and conspiracy to violate U.S. sanctions. Similarly, Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill were sentenced for operating a bitcoin mixing service, a case that has garnered attention, with requests made for a presidential pardon.
Blanche’s assertion that the department’s investigative approach has fundamentally shifted aims to provide clarity to the industry. He stressed that the focus remains on the actual criminal acts, such as money laundering and sanctions evasion, rather than on the mere development of software. This stance appears to draw a distinction between creating technology and actively enabling or participating in its illicit use. Previously, in a memo, Blanche had indicated a preference for regulatory bodies, rather than criminal enforcement, to establish frameworks for digital assets, suggesting a cautious approach to criminalizing the development of such technologies.
Potential Regulatory Precedent and Global Context
Blanche’s remarks could establish a crucial legal precedent for how software developers in the cryptocurrency sector are treated by law enforcement. The distinction he drew—that developers not actively aiding criminal enterprises are safe from prosecution—might lead to greater confidence within the developer community. This is particularly relevant as global regulators continue to grapple with how to oversee digital assets. Jurisdictions like the European Union, with its Markets in Crypto-Assets (MiCA) regulation, are actively developing comprehensive legal frameworks. MiCA, for example, aims to provide legal certainty and consumer protection while fostering innovation. The DOJ’s stated approach, if consistently applied, could influence how other nations consider developer liability within their own evolving regulatory landscapes. The challenge for regulators globally is to strike a balance between preventing illicit activities and avoiding stifling technological advancement. The DOJ’s emphasis on direct involvement in criminal acts, rather than mere provision of tools, could be seen as a step towards this balance.
FBI Director Kash Patel, also present at the panel, underscored the bureau’s focus on specific types of fraud, such as “pig butchering” or romance scams, which often involve fraudulent investments in virtual assets. Patel noted his commitment to addressing these issues through on-the-ground efforts in Southeast Asia, differentiating between criminal misuse of assets and legitimate use of cryptocurrencies.
Original article : www.theblock.co