TechFlow news, August 22 — According to Decrypt, Matthew Galeotti, acting head of the Criminal Division at the U.S. Department of Justice, announced at a policy summit in Jackson Hole, Wyoming, that federal prosecutors will no longer use Section 1960(b)(1)(C) of the U.S. Code to charge developers of decentralized software. That section prohibits individuals from operating unlicensed money transmitting businesses that handle funds known to be derived from criminal activity or intended for illegal purposes.
Galeotti stated that when evidence shows the software is genuinely decentralized and only automatically processes peer-to-peer transactions, and third parties do not have custody or control over user assets, prosecutors will not approve new related charges against such third parties. However, he emphasized that other charges may still apply if criminal intent is present.
