Todd Blanche and Kash Patel told attendees at the Bitcoin 2026 Conference on April 27 that developers working on Bitcoin will not face investigation or charges if they are not knowingly enabling criminal activity. The remarks represent the strongest public clarification yet on developer liability since the Tornado Cash prosecutions began.
Summary
Blanche stated that the DOJ has “fundamentally changed the game,” emphasizing that developers who do not intentionally assist criminal activity will not be targeted, though crimes like money laundering and sanctions violations remain prosecutable.
Patel said the FBI is now prioritizing large-scale crypto fraud operations, including pig-butchering scams linked to foreign actors, with planned enforcement efforts in Southeast Asia.
Both officials joined via videoconference from Washington, D.C., following a security incident tied to an assassination attempt at the White House Correspondents’ Dinner.
The statements offered a rare level of reassurance for Bitcoin developers, as Blanche and Patel addressed the conference remotely in a session moderated by Paul Grewal. Blanche made it clear that writing code alone does not constitute a crime unless the developer knowingly aids illegal use.
Policy rooted in April 2025 DOJ memo
Blanche’s remarks build on a directive he issued in April 2025 while serving as Deputy Attorney General. The memo instructed the Department of Justice to move away from what he described as “regulation by prosecution” in crypto-related cases and led to the disbanding of the National Cryptocurrency Enforcement Team.
The guidance specifically directed prosecutors to avoid targeting developers who create neutral tools that may later be misused by third parties. This framework was later referenced when narrowing charges against Roman Storm ahead of trial.
Blanche clarified the distinction: coding itself is protected, but knowingly facilitating illicit financial activity is not. He added that developers receiving legal notices should feel confident engaging with prosecutors if they believe their case conflicts with DOJ policy.
Implications for ongoing cases
The impact of this policy shift may become clearer in the upcoming retrial of Roman Storm. In August 2025, Storm was convicted of operating an unlicensed money transmitter, while jurors were unable to reach a verdict on more serious charges related to money laundering and sanctions violations.
Prosecutors have since scheduled a retrial for October on those unresolved counts. Blanche acknowledged that some ongoing cases remain complex and are still being handled under evolving legal interpretations, though he emphasized that the broader policy direction has changed.
FBI shifts focus to crypto fraud networks
Patel outlined a different but complementary priority, stating that the FBI is concentrating on organized crypto fraud operations, particularly pig-butchering scams run out of Southeast Asia. He revealed plans to visit Cambodia, Myanmar, and Thailand to coordinate enforcement actions with local authorities.
Industry observers see this shift as a sign that law enforcement is moving away from targeting developers and toward combating large-scale financial crime networks.
Peter Van Valkenburgh described the announcement as progress, but noted that uncertainty remains around how authorities will define the boundary between publishing open-source code and having actionable knowledge of wrongdoing.
The retrial of Roman Storm is expected to serve as a key test of whether the DOJ’s updated stance will lead to tangible changes in enforcement outcomes.
