DOJ: No Prosecution for Code, Unless You’re a Villain! 🤖

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The DOJ, in a stunning act of clarity, has decided that building decentralized software won’t get you prosecuted unless you’re actively trying to rob a bank or something.

DOJ Fuels Crypto Boom (Or at Least Stops Prosecuting Developers Who Don’t Want to Be Criminals)

The U.S. Department of Justice (DOJ) has taken a break from its usual chaos to declare that crypto innovators can keep coding without fear-unless they’re trying to fund a galactic empire. At the American Innovation Project Summit in Jackson, Wyoming, on Aug. 21, 2025, Acting Assistant Attorney General Matthew R. Galeotti delivered a speech so thrilling, it made a spreadsheet weep. 🧠

He stressed that prosecutors aren’t regulators or legislators, but enforcers of criminal law bound by due process and constitutional limits. Which, if you think about it, is like saying “I’m not a wizard, I’m just a guy who occasionally talks to a wand.” 🧙‍♂️

He emphasized that building tools, writing code, or experimenting with decentralized technologies should not place responsible developers at risk of prosecution. Making it clear that the Department’s focus is on intent-driven misconduct such as fraud, money laundering, and sanctions evasion. Or, as the DOJ puts it, “We’re not here to stop you from being a genius, just don’t be a jerk.” 😎

If a developer merely contributes code to an open-source project, without the specific intent to assist criminal conduct, aid or abet a crime, or join a criminal conspiracy, he or she is not criminally liable.

He also clarified how the DOJ evaluates money transmission charges: “Many developers have relied on regulatory guidance to suggest that non-custodial cryptocurrency software does not constitute an unlicensed money transmitting business. While that guidance may not be binding on the Department, its implications can of course factor into prosecutors’ charging decisions.” Which is basically saying, “We’ll consider your feelings, but don’t expect a hug.” 💔

He continued:

Therefore, where the evidence shows that software is truly decentralized and solely automates peer-to-peer transactions, and where a third party does not have custody and control over user assets, new 1960(b)(1)(C) charges against the third-party will not be approved.

These assurances reinforce that decentralized software development, absent bad intent, will not be criminalized. Or as the DOJ might say, “We’re not your mom, but we’re not your worst enemy either.” 😂

While citing enforcement against a China-based laundering syndicate, a $225 million fraud-related forfeiture, and a Ponzi scheme promising AI-driven crypto profits, Galeotti framed these cases as necessary steps to protect trust in the ecosystem. He underscored that strong enforcement against bad actors ultimately strengthens the industry, ensuring innovators can continue to build without fear of arbitrary liability. The DOJ’s approach signals that digital assets are increasingly recognized as a central component of U.S. innovation and economic growth, with law enforcement targeting only those who undermine that progress. Which, in other words, “We’re here to help, but don’t make us regret it.” 🚀

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2025-08-22 03:08