DOJ shifts stance as code deemed not crime

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DOJ shifts stance as code deemed not crime
DOJ shifts stance as code deemed not crime
Mahathir Bayena
Written by Mahathir Bayena
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Acting US Attorney General Todd Blanche said the Department of Justice will no longer investigate or charge blockchain developers unless they knowingly assist criminal activity.

Speaking at a Bitcoin conference in Las Vegas, Blanche confirmed the DOJ and FBI are shifting focus away from developers towards individuals directly engaged in financial crime.

“The basic principle is that if you are developing software, if you are a coder, if you are part of that process and you are not the third-party user, and you are not helping and knowing the third party is using what you developed to commit crimes, you are not going to be investigated and not going to be charged,”

Said US Department of Justice Acting Attorney General, Todd Blanche.

The announcement marks a notable departure from previous enforcement actions against platforms such as Tornado Cash, which had been targeted over alleged facilitation of money laundering and sanctions evasion.

Despite positive reactions from parts of the crypto industry, Coin Center executive director Peter Van Valkenburgh said uncertainty remains around how the DOJ defines “helping” or “knowing” involvement in illicit activity.

The policy shift follows a broader DOJ memo issued in April 2025 outlining an end to “regulation by prosecution”, signalling that developers would not be held liable for unintended misuse of their software.

The change comes after years of legal disputes involving developers such as Roman Storm and Michael Lewellen, highlighting ongoing tensions between innovation and regulatory clarity in the US crypto sector.

At the time of reporting, Bitcoin price was $76,724.71.

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