Bitcoin Developers Get Clarity on Legal Status at Las Vegas Event
On April 27, during the Bitcoin 2026 Conference in Las Vegas, Acting Attorney General Todd Blanche and FBI Director Kash Patel provided a significant assurance to Bitcoin developers. They announced that those who create code without knowingly supporting criminal activities undertaken by third parties will remain safe from investigations and charges. This statement marks a crucial moment for developers, especially following the contentious Tornado Cash prosecutions.
Blanche and Patel appeared via videoconference at the event, which was moderated by Paul Grewal, Coinbase’s Chief Legal Officer. Blanche reassured attendees that any coder not explicitly assisting individuals in using their software for illicit purposes would not face legal repercussions. He emphasized, “If you are developing software… and you are not helping and knowing the third party is using what you develop to commit crimes, you are not going to be investigated and not going to be charged.” Patel echoed this support for Bitcoin as essential economic infrastructure, affirming its permanence alongside other assets that facilitate everyday transactions.
Legal Framework Rooted in Previous Memo
The assurances delivered by Blanche align with a memo he issued in April 2025 while serving as Deputy Attorney General. This memo instructed the Department of Justice (DOJ) to cease “regulation by prosecution” concerning cryptocurrency cases and disbanded the National Cryptocurrency Enforcement Team. The memo distinctly guided prosecutors away from targeting developers who build neutral tools, which may later be misused by others. The DOJ also referenced this guidance when scaling back charges against Roman Storm, co-founder of Tornado Cash, ahead of his trial. Blanche drew a clear distinction: creating code is protected but knowing involvement in money laundering or sanctions violations is not acceptable. “The mere fact that you happen to be a coder doesn’t excuse you from criminal liability,” he stated while encouraging developers who receive subpoenas to connect with their legal representatives directly regarding concerns about the legitimacy of their cases.
Implications for Ongoing Legal Cases
The real test of whether these new assurances will result in meaningful changes lies in the upcoming retrial of Roman Storm. In August 2025, Storm received a conviction for operating as an unlicensed money transmitter; however, jurors could not agree on two more severe charges related to money laundering and sanctions violations—each potentially resulting in up to 40 years in federal prison. Prosecutors from SDNY have since requested an October retrial for these unresolved charges. During the conference, Blanche acknowledged “lingering” cases without naming specifics but assured that progress is being made on them while highlighting that policy changes are taking place. Previous trials have shown jurors often find it challenging to differentiate between simply writing code and actively conspiring to facilitate its misuse.
FBI’s Focus Shift Toward Crypto Fraud Cases
While Blanche’s comments concentrated on the protection of developers, Patel highlighted a shift toward tackling crypto fraud instead. He pointed out that networks running pig-butchering scams out of Southeast Asia represent a top priority for FBI enforcement efforts. Patel shared plans for upcoming trips to Cambodia, Myanmar, and Thailand this summer to collaborate with local authorities on these issues. Following Blanche’s remarks regarding open-source software development criminalization concerns from industry advocates surfaced again—particularly as the DeFi Education Fund had earlier reached out to White House crypto czar David Sacks urging an end to what they termed a campaign against open-source practices initiated during Biden’s presidency.
Cohen Center’s Peter Van Valkenburgh noted this alignment between both leaders’ messages as a progressive step forward but expressed concern over an unanswered question: how exactly does the DOJ delineate between sharing open-source code and possessing actionable knowledge about criminal acts? This clarification will continue with Storm’s retrial set for October, serving as the first significant test of whether these shifts lead to altered outcomes in ongoing legal matters.