At a summit organized by the American Innovation Project, Acting Assistant Attorney General of the US Department of Justice Criminal Division Matthew Galeotti stated that writing software code cannot be considered a criminal offense if there is no intent to commit illegal acts.
The Department's New Position
According to Galeotti, the mere creation of technologies for storing and transferring value or new tools in the digital economy should not become a reason for charges. However, he emphasized that the criminal department will continue to prosecute cases of intentional offenses related to fraud, money laundering, or sanctions evasion.
In his speech, the official also noted that the department is moving away from the practice of using criminal law as a tool for regulating the crypto industry. Now, charges will only be brought if it is proven that the software is controlled by a third party and can be used to manage users' assets. If the code is decentralized and provides only peer-to-peer transactions, the developers will not be subject to criminal prosecution.
Implications for the industry
This position of the DOJ can significantly reduce the risks for developers of decentralized applications and digital asset mixing services. In particular, we are talking about projects like Tornado Cash, which have already been the subject of legal disputes.
Recall that earlier, a jury in the Southern District of New York found one of the creators of Tornado Cash, Roman Shtorm, guilty of operating an unlicensed money transfer service. This case raised concerns in the community, as the developers feared that the very fact of writing the code could be considered a crime.
Result
Galeotti's statement was a signal that the US Department of Justice intends to distinguish between the concepts of "technology" and "criminal use of technology." Thus, developers of decentralized solutions can count on greater legal certainty, while law enforcement attention will be focused on real violations of the law.