The U.S. Department of Justice (DOJ) has just announced that it will no longer prosecute decentralized software developers under the statute that was used to convict Tornado Cash co-founder, Roman Storm, earlier this month.

Matthew Galeotti, acting head of the DOJ's criminal division, stated that prosecutors will avoid these charges if the software is truly decentralized and does not hold users' assets, although other charges may still apply if there is intent to commit a crime. He emphasized: “When evidence shows that the software is completely decentralized and only automates peer-to-peer transactions, and a third party does not manage or control users' assets, new charges under 1960(b)(1)(C) will not be approved.”

This decision is regarded by many industry leaders in crypto as a significant victory, but some still question the timing and actual impact, especially after Storm was just convicted. Previously, Storm faced multiple charges, including conspiracy to commit money laundering and sanctions violations, related to operating Tornado Cash – a money mixing service that allows anonymous transactions on the blockchain.

DeFi and privacy advocates welcomed this move by the DOJ, viewing it as a positive signal against holding developers accountable for third-party misuse. However, some are concerned that Galeotti's statements lack legal binding and that the clause regarding “intent to commit a crime” may lead to controversies in future cases.