Acting U.S. Attorney General Todd Blanche’s promise to developers at the Bitcoin 2026 conference in Las Vegas has been dismissed by Tornado Cash developer Roman Storm’s defense team.
Despite the Trump administration’s crypto-positive attitude, the ongoing prosecution of non-custodial developers has become something of a hole in the hull of what is supposed to be a regulatory tight ship.
What did the Attorney General Blanche actually say?
Speaking on a panel hosted by Coinbase’s (NASDAQ: COIN) Chief Legal Officer, Paul Grewal, Acting U.S. Attorney General Todd Blanche stated that software developers would no longer face prosecution for writing code.
He said coders would be exempt from prosecution if it is proven that they are not third-party users, and are not helping or knowledgeable about what a third-party user is using their product for.
However, he contradicted himself later on, stating that being a coder doesn’t excuse anyone from criminal liability.
The CEO of Coin Center, Peter Van Valkenburgh questioned how the DOJ determined what classifies as publishing noncustodial software and “helping” or “knowing” about a bad user.
“What counts as ‘helping’? What counts as ‘knowing’?” He added.
Laurent Salat, creator and developer of OXT, pointed out that under such vague interpretations of what counts as knowledge, a federal agent could incriminate an operator of a non-custodial bitcoin service with a simple email.
Why is Roman Storm still facing prison?
Cryptopolitan reported that Roman Storm was convicted in August 2025 of one count of conspiracy to operate an unlicensed money transmitting business. A jury was unable to decide on whether or not to charge Storm with conspiracy to commit money laundering and conspiracy to violate the International Emergency Economic Powers Act.
Even though the U.S. Treasury lifted sanctions on Tornado Cash in 2025, the DOJ filed for a retrial on the deadlocked counts in March 2026.
AG Blanche’s “knowledge” standard is the exact legal theory used to convict Roman Storm in the first place. In his case, the government introduced evidence that he received emails from third parties about misuse of Tornado Cash, conducted Google searches about prominent hacks, and shared media reports about those hacks with team members.
Prosecutors have argued this constitutes sufficient “knowledge” to establish criminal liability for transmitting illicit funds, a theory that even Judge Katherine Polk Failla, who is presiding over the case, questioned.
Storm himself posted on X that developers “CAN be prosecuted for your software,” adding that it does not matter whether a developer can stop the software from functioning.
Storm’s counsel Brian Klein argued at the hearing that any technology created for legitimate purposes can be misused, and that a developer’s awareness of such misuse does not amount to assisting criminals. His team cited case law, including a sugar seller who knew his product was being used to manufacture illegal alcohol during prohibition.
Judge Katherine Polk Failla has tentatively set Storm’s retrial date for October 26, 2026. If convicted on the remaining charges, he faces up to 40 years in prison.
