Weeks After Tornado Cash Co-Founder's Conviction, DOJ Official Says 'Well-Intentioned' Developers Not Responsible For Third-Party Abuse

The Justice Department has decided to ease its approach towards developers who create decentralized platforms for sending cryptocurrencies without criminal intent, a key official said Thursday.

Developers Of ‘Neutral Tools’ Not Liable For Third-Party Abuse

During a speech at the Wyoming Blockchain summit, Matthew Galeotti, acting Assistant Attorney General of the DOJ’s criminal division, weighed in on the issue of holding smart contract developers responsible for operating unregistered “money transmitting” firms.

“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,” Galeotti said.

He added that developers of “neutral tools” who have no criminal intent should not be held liable for someone else’s misuse of those tools, adding, “If a third party’s misuse violates criminal law, the third party should be prosecuted rather than the well-intentioned developer.”

Galeotti said that the Criminal Division will continue to go after “bad actors” and prevent them from exploiting technologies that encourage innovation.

See Also: Trump’s Pardon Frees Arthur Hayes To Pursue Stem Cell Enterprises And Bitcoin Treasuries

Will Tornado Cash Founder Get Relief?

The remarks come weeks after Roman Storm, co-founder of cryptocurrency mixing platform Tornado Cash, was convicted for operating an unlicensed money transmitting business. Prosecutors alleged Storm knowingly profited from illegal use of the protocol, while the defense emphasized that non-custodial software developers shouldn’t be treated as financial intermediaries.

Edward Snowden, the former CIA contractor turned whistleblower, publicly backed Storm, emphasizing that privacy is not a crime.

Notably, the federal government disbanded the Justice Department’s crypto investigation unit, aligning with President Donald Trump’s directive to foster a more cryptocurrency-friendly regulatory environment.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.