Federal Officials Assure Bitcoin Developers at Conference
During the Bitcoin 2026 Conference held in Las Vegas on April 27, Acting Attorney General Todd Blanche and FBI Director Kash Patel made a significant declaration: Bitcoin developers who create software without intentional involvement in third-party criminal activities are safe from investigation or prosecution. This statement marks a definitive, public endorsement regarding developer liability and follows the controversies surrounding the Tornado Cash cases.
Both Blanche and Patel joined via videoconference for the event, which was moderated by Paul Grewal, Chief Legal Officer of Coinbase. According to Bitcoin Magazine, Blanche reassured attendees by saying, “If you are developing software… and you are not helping and knowing that a third party is using what you develop to commit crimes, you are not going to be investigated and not going to be charged.” Patel reinforced this notion, asserting that Bitcoin is an enduring part of economic infrastructure comparable to other essential assets utilized daily.
Guidelines Rooted in an April 2025 Memo
The reassurances presented by Blanche stem from a memo he issued while serving as Deputy Attorney General in April 2025. This directive instructed the Department of Justice (DOJ) to cease its “regulation by prosecution” approach within cryptocurrency cases and disbanded the National Cryptocurrency Enforcement Team. As crypto.news has highlighted, this memo explicitly advised prosecutors against targeting developers who build neutral tools that might later be misused. The DOJ referred to this directive while minimizing charges against Tornado Cash co-founder Roman Storm in advance of his trial. Importantly, Blanche clarified the boundaries: crafting code is protected under the law, but intentionally aiding money laundering or sanction violations crosses a line. He emphasized, “The mere fact that you happen to be a coder doesn’t excuse you from criminal liability,” indicating that developers facing subpoenas should feel empowered to have their attorneys engage with prosecutors directly—and with him—if they believe there’s inconsistency with his memo.
Implications for Ongoing Cases Like Roman Storm’s and Samourai Wallet
The real implications of Blanche’s statements will become clearer during Roman Storm’s retrial. Crypto.news reported that Storm was found guilty in August 2025 for operating an unlicensed money transmitter; however, jurors could not reach a unanimous verdict on two more severe charges related to money laundering and sanctions violations, which could lead to up to 40 years of federal imprisonment. Following this deadlock, SDNY prosecutors have called for a retrial set for October regarding those unresolved matters. While discussing ongoing challenges at the conference, Blanche acknowledged certain “lingering” cases without naming them directly but stressed that his policy shift is tangible. The complexity of such trials underscores the difficulty juries face when distinguishing between writing code and deliberately conspiring to exploit it illicitly.
Patel’s Shift in Focus Towards Crypto Fraud
Paking a different angle than Blanche’s focus on developers, Patel outlined that the FBI’s primary enforcement target involves tackling pig-butchering scam rings based out of Southeast Asia. He plans outings this summer to Cambodia, Myanmar, and Thailand for closer collaboration with local authorities on these issues. On April 28, 2025, the DeFi Education Fund urged White House crypto czar David Sacks not only to advocate against what they view as “lawless” campaigns by the Biden-era DOJ but also to monitor whether Blanche’s memo leads to substantive change rather than merely rhetorical assurances. Grewal encapsulated this unified message: “crime is criminal; code alone shouldn’t be,” echoing sentiments long sought by industry stakeholders from federal law enforcement.
Peter Van Valkenburgh of Coin Center remarked on this affirmation as progress yet pointed out an unresolved key question: how precisely does the DOJ differentiate between simply publishing open-source code versus possessing actionable awareness of illicit activities? The upcoming October retrial involving Roman Storm will serve as the critical litmus test for determining if the policy shift heralded by Blanche produces different outcomes for pre-existing cases.