A new Department of Justice policy pledges not to prosecute software developers for third-party crimes - unless they acted 'knowingly.' The promise, delivered by incoming Deputy Attorney General Todd Blanche at Bitcoin Vegas, offers a legal carve-out for coders operating in gray areas.
On Stacker News Live, hosts Keon and Carl analyzed the catch. They noted the DOJ maintains a unique, aggressive standard for Bitcoin developers it doesn’t apply to Big Tech. Gmail and car manufacturers aren’t held liable despite knowing their products facilitate crime. The policy’s reality is tested by the ongoing prosecutions of three non-custodial developers who face decades in prison.
“Politicians say what crowds want to hear. The reality remains that three non-custodial developers currently face decades in prison. Until those cases drop, the Vegas promises are just noise.”
- Keon and Carl, Stacker News Live
For Colonial on Ungovernable Misfits, the legal debate is a distraction. Sovereignty is taken, not granted, through territorial control. The arrest of Samourai Wallet developers clarified the terrain: public builders who register LLCs and hire lawyers provide the state with a physical neck to wring. Martyrs lose by definition.
The era of the public privacy builder is over. Colonial argues the next generation must be ghosts - clandestine developers operating without a central point of failure or a known identity. Winning requires sacrificing public recognition for operational security. This transition to an 'Ashigaru' model is the only viable path against a state that views private commerce as a mortal threat.
“Builders who register LLCs, hire lawyers, and speak at conferences provide the state with a physical neck to wring. Martyrs lose by definition.”
- Colonial, Ungovernable Misfits
With public building deemed suicidal, the focus shifts underground. The digital world becomes the primary front for capturing territory, where individuals can project significant power with fewer physical resources. For Colonial, the choice is binary: you are either watched or you are not. Transparent money is managed money, and Bitcoin without privacy is just a more efficient surveillance apparatus. The DOJ’s exemption doesn’t change the fundamental conflict; it just confirms which side is winning.

