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DOJ’s Acting AAG Matthew Galeotti Says Writing Code Without Ill Intent Isn’t Criminal

DOJ’s Acting AAG Matthew Galeotti Says Writing Code Without Ill Intent Isn’t Criminal

According to Acting Assistant Attorney General Matthew Galeotti, the DOJ will prioritize intent over technical classification in crypto cases, signaling a shift away from prosecuting developers absent evidence of fraud or illicit activity.

Fact Check
Multiple recent news sources (Source 4 and 6) directly attribute the statement that writing code without ill or criminal intent is not a crime to Matthew J. Galeotti, identifying him as the acting assistant attorney general for the DOJ's criminal division. A DOJ press release (Source 5) confirms a Galeotti works in the Justice Department's Criminal Division. The statement aligns with broader, official DOJ policy changes (Source 1 and 2) that emphasize not prosecuting 'good faith' security research, making intent a critical factor.
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Summary

The U.S. Department of Justice announced it will not prosecute software developers who create decentralized platforms unless there is evidence of criminal intent. Acting Assistant Attorney General Matthew Galeotti clarified at a digital assets summit that writing code alone does not constitute a crime. He emphasized that statutes prohibiting unlicensed money transmission will not apply to developers unless they knowingly facilitate illegal activity. This policy shift comes after the recent conviction of Tornado Cash co-founder Roman Storm for operating an unlicensed money transmitting business. Galeotti stated prosecutors will continue to pursue fraud, Ponzi schemes, laundering networks, and sanctions evasion, but will not target developers acting in good faith. The move was welcomed by crypto advocates seeking regulatory clarity, though anti-money laundering groups cautioned that decentralized platforms and privacy tools could still enable criminal misuse.

Terms & Concepts
  • Decentralized exchange (DEX): A platform that facilitates peer-to-peer cryptocurrency trading without intermediaries, where developers typically lack control over user transactions.
  • Unlicensed money transmission: Operating as a money transmitter without required licenses or compliance obligations such as customer vetting and suspicious activity reporting.
  • Tornado Cash: A privacy-focused cryptocurrency mixing service designed to obscure transaction trails, which was central to a recent DOJ case.