DOJ Declares Writing Code Without Ill Intent Is Not a Crime as Bitcoiner Loses $91M in Social Engineering Scam

DOJ Says Writing Code Without Ill Intent Is Not a Crime, Signaling Shift After Tornado Cash Verdict

The U.S. Department of Justice signaled a major policy shift on crypto, with acting Assistant Attorney General Matthew Galeotti stating that “merely writing code without ill intent is not a crime.” Speaking at an American Innovation Project event, Galeotti clarified that decentralized software enabling peer-to-peer transactions without third-party custody will not trigger charges under federal statute 18 U.S.C. 1960. The remarks come just weeks after Tornado Cash developer Roman Storm was convicted on those grounds, prompting industry figures to call for his case to be dropped. The DOJ’s stance reflects a broader shift under the new presidential administration, moving away from aggressive enforcement and aligning closer with a Trump-era memo that rejected using criminal statutes as de facto regulation for digital assets.

Ethereum ETFs Attract $5.4B in July, Outpace Bitcoin as JPMorgan Cites Staking Prospects, Treasury Adoption, and SEC Clarity

Ethereum has been outperforming Bitcoin in recent weeks, fueled by record ETF inflows, corporate treasury adoption, regulatory clarity, and structural ETF improvements, according to JPMorgan. Ethereum ETFs matched Bitcoin ETFs with $5.4 billion of inflows in July and have continued to attract capital while Bitcoin ETFs saw outflows in August. Analysts expect further upside as the SEC considers staking approval for ETH ETFs, corporates expand holdings and validator activity, and in-kind ETF redemptions boost efficiency. Ethereum adoption still lags Bitcoin, leaving room for growth.

Bitcoiner Loses $91M in 783 BTC Social Engineering Scam as Attacker Launders Funds Through Wasabi Wallet

A Bitcoiner lost $91 million in a single transaction after falling victim to a social engineering scam, blockchain investigator ZachXBT reported. The attacker posed as crypto exchange and hardware wallet support, tricking the victim into transferring 783 BTC. The funds were later funneled through the privacy-focused Wasabi Wallet to obscure their trail. ZachXBT ruled out North Korean hackers as suspects, noting the attack coincided with the one-year anniversary of the $243 million Genesis creditor theft. The case highlights a surge in scams impersonating hardware wallet providers like Ledger and Trezor, with similar schemes earlier this year leading to hundreds of millions in losses.

Coinbase Lists Trump-Backed USD1 Stablecoin, Expanding Options for U.S. Users Amid Post-GENIUS Act Stablecoin Boom

Coinbase has listed USD1, the Trump-backed stablecoin from World Liberty Financial, giving U.S. users access to three major stablecoins alongside USDT and USDC. Eric Trump hinted at more announcements coming soon, while the listing coincides with increased stablecoin activity following the GENIUS Act’s passage. World Liberty’s DeFi platform, built on Ethereum with Aave, has yet to launch, though its governance token WLFI may soon become tradable. The project has drawn political scrutiny, particularly after USD1 was used in a $2 billion Abu Dhabi sovereign wealth fund investment into Binance. Despite controversy, the GENIUS Act passed with bipartisan support, further legitimizing stablecoins in the U.S.