DOJ to Stop Targeting Blockchain Developers, Acting AG Says

Acting U.S. Attorney General Todd Blanche told a Bitcoin conference in Las Vegas on Monday that the Department of Justice and the FBI will stop pursuing blockchain developers who do not knowingly assist criminal users and will instead focus enforcement on individuals who use digital-asset platforms to commit financial crimes. Blanche spoke alongside FBI Director Kash Patel and Coinbase Chief Legal Officer Paul Grewal.

Blanche outlined an enforcement standard that limits investigation and prosecution to developers who actively help or know about criminal activity. According to Blanche, developers who create software but are not third-party users and do not assist or know of illicit use “are not going to be investigated and not going to be charged.” He added he does not want platforms to view the DOJ or FBI as a constant source of legal trouble.

The comments expand on a memo Blanche issued in April 2025 directing prosecutors to avoid treating developers as targets for the acts of third-party users or for unwitting regulatory violations. The memo uses the phrase “ending regulation by prosecution” and tells prosecutors to consider whether a developer provided active assistance or had knowledge of criminal conduct before bringing charges.

Blanche’s remarks follow past enforcement actions against services accused of facilitating illicit finance. The crypto mixer Tornado Cash was sanctioned by the Office of Foreign Assets Control in August 2022; those sanctions were lifted in November 2024. Two developers tied to the project were indicted in August 2023. Roman Storm was convicted in August 2025 and denies wrongdoing. Roman Semenov remains at large.

Responses from the crypto policy community noted the change but asked for clearer lines. Peter Van Valkenburgh, executive director of Coin Center, called Blanche’s statement a better message than developers have heard in recent years but said uncertainty remains about when publishing noncustodial software crosses into knowingly assisting illicit users. Van Valkenburgh pointed to a separate case in which a Texas court dismissed a pre-enforcement suit by developer Michael Lewellen in late March for lack of a credible threat of enforcement.

Justice Department officials have signaled the adjusted enforcement posture for more than a year. The department’s guidance asks prosecutors to determine whether a developer actively assisted illicit users or had knowledge of criminal activity before pursuing charges. Industry lawyers said additional guidance from regulators and courts will be needed to clarify enforcement boundaries for privacy-enhancing and noncustodial projects.