U.S. Department of Justice shifts: Decentralization software developers will be exempt from certain criminal charges

On August 22, according to reports from Block Rhythm, a senior official from the U.S. Department of Justice stated on Thursday in Jackson Hole, Wyoming, to a group of lobbyists and leaders from the encryption industry that the U.S. government will no longer prosecute decentralized software developers for specific charges in the future—just earlier this month, federal prosecutors successfully convicted Tornado Cash co-founder Roman Storm on this charge.

The charge originates from Title 18, Section 1960 of the United States Code, which stipulates that any operator of an unlicensed money transmission business who engages in transactions involving funds known to be derived from criminal activity or intended for illegal activity is in violation of the law. Just weeks ago, a Manhattan jury found Storm guilty of violating this law, which carries a maximum penalty of 5 years in federal prison. The jury was unable to reach a verdict on all other charges.

At today's Jackson Hole policy summit, Matthew Galeotti, acting head of the Criminal Division of the U.S. Department of Justice, made it clear to leaders and lobbyists in the encryption industry that federal prosecutors will no longer apply charges under 1960(b)(1)(C) to decentralized software developers.