A recent declaration from a high-ranking Department of Justice (DoJ) official signals a significant shift in the U.S. government's approach to charging developers of decentralized software (DeFi). This new stance, however, has immediately ignited calls for the dismissal of charges against Roman Storm, co-founder of the crypto mixer Tornado Cash, whose recent conviction appears to directly contradict the DoJ's latest guidance.
DoJ Clarifies Stance on Developer Liability
Mathew Galeotti, the acting head of the DoJ’s criminal division, recently clarified the department's position on holding DeFi developers accountable for illicit activities. He stated that "developers of neutral tools, with no criminal intent, should not be held responsible for someone else’s misuse of those tools." Galeotti further emphasized that new charges under U.S. Code 1960(b)(1)(C), which bans unlicensed money transmission, will not be approved against developers, particularly for "truly decentralized" software where a third party does not control user assets. The DoJ's focus, he asserted, should be on prosecuting the third parties directly responsible for criminal misuse.
The Roman Storm Contradiction
This new DoJ guidance has put the recent conviction of Roman Storm under intense scrutiny. Storm was found guilty under the very U.S. Code 1960(b)(1)(C) for operating Tornado Cash, a protocol that was presented as a decentralized tool, thus making the DoJ's latest remarks appear to directly undermine the basis of his conviction. Prominent crypto legal experts, including Jake Chervinsky of Variant Fund and Paul Grewal of Coinbase, swiftly highlighted this discrepancy. They argue that if the DoJ genuinely adheres to its updated stance, the charges against Roman Storm, who faces up to five years in jail, should be immediately dropped. The crypto community is now urging for his appeal to reflect this crucial shift in government policy, raising questions about the viability of the government's defense in his ongoing legal battle.
