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DOJ prosecutors circumvent Blanche memo on developer prosecutions

Thursday, June 18, 2026 · from 2 podcasts
  • Career prosecutors reportedly swap charge codes to continue targeting crypto developers.
  • Samourai Wallet's Rodriguez argues a policy ceasefire is meaningless while builders remain imprisoned.
  • Selective enforcement against Anthropic shows a new precedent: competitor complaints trigger product bans.

Donald Trump’s executive orders told his Justice Department to stop prosecuting software developers for the actions of their users. His Acting Attorney General, Todd Blanche, issued a memo directing prosecutors accordingly.

But according to Samourai Wallet co-founder Kione Rodriguez, speaking from prison, ground-level career prosecutors are defying the directive. Rodriguez claims line prosecutors are swapping charge codes and tweaking legal language to maintain their cases. The bureaucratic insurgency creates a functional divide: executive policy wants a ceasefire, but unelected lifers continue a ‘civil war’ against crypto.

“Prosecutors are reportedly swapping charge codes and tweaking legal language to maintain their cases despite explicit orders to rein in rogue prosecutions.”

- Samourai Wallet co-founder Kione Rodriguez, Ungovernable Misfits

The victories for crypto are hollow, Rodriguez argues, as long as ‘combatants’ like himself and Roman Storm remain in federal prison. He says the community’s initial failure to fund legal defense allowed the government to set a dangerous precedent. True victory requires physical extrication from prison camps.

Parallel dynamics of selective enforcement appear elsewhere in the administration’s tech policy. On Breaking Points, Krystal Ball detailed how Anthropic’s flagship Fable 5 model was abruptly killed by a national security directive days after its release. She argued the trigger was Amazon CEO Andy Jassy, who reportedly complained to the Treasury Secretary that his researchers had jailbroken the model for cyberattacks.

Ball and co-host Saagar Enjeti suggested this reflects political favoritism: Anthropic CEO Dario Amodei is a disfavored outlier, while OpenAI’s Sam Altman and xAI’s Elon Musk operate with relative freedom. The order creates a precedent where private corporate red-teaming by a competitor can immediately de-platform a rival’s product via the White House Situation Room.

“Anthropic CEO Dario Amodei is viewed as a disfavored outlier who refused to ‘bend the knee.’”

- Krystal Ball, Breaking Points

The administrative state’s resistance, coupled with the administration’s pattern of rewarding loyalty and punishing dissent, means executive directives only go as far as the bureaucrats willing to execute them. For crypto, the memo from Blanche is just paper until the prosecutors who ignored it are replaced.

Source Intelligence

- Deep dive into what was said in the episodes

Two Years In | Letter #6: Notes From The InsideJun 18

Also from this episode: (5)

Privacy (3)

  • Samourai Wallet co-founder Kione Rodriguez alleges career prosecutors defy DOJ directives to stop prosecuting software developers, swapping charge codes and tweaking legal language to bypass policy orders.
  • Rodriguez recounts his 2024 arrest with Roman Storm by 50 armed tactical agents and drones, characterizing it as a military-grade state response to liquidate non-custodial privacy tools.
  • Rodriguez contends true victory requires physically freeing developers from federal prison camps. A regulatory ceasefire is meaningless while people who built tools are jailed.

Regulation (2)

  • Rodriguez argues this bureaucratic insurgency creates a functional divide between executive policy and ground-level enforcement. Unelected career prosecutors wage a 'civil war' against crypto regardless of White House occupants.
  • Rodriguez warns recent regulatory victories are hollow while developers like himself remain imprisoned. The crypto community's failure to fund early legal defense allowed a dangerous precedent.

6/15/26: Anthropic Model Banned, AI Crash Incoming, Eric Trump UFC Scandal, WH Panic Over Situation Room LeakJun 15

  • Krystal argues the government's selective enforcement against Anthropic reflects political favoritism, citing Dario Amodei's disfavored status versus Sam Altman or Elon Musk's closer ties to the Trump administration.
  • Fighter Josh Hokit shouted 'Michelle Obama is a man' in his post-fight interview at the White House UFC event, repeating a provocation he used on the Contender Series.
  • Luke Thomas argues the UFC has been the most important mainstream actor rehabilitating Trump's image post-January 6th, providing him third-party validation and direct access to young male voters.
  • UFC bonuses for fighters at the White House event were paid by World Liberty Financial, a company central to Trump's financial self-dealing.
  • Polling shows only 16% of Americans and 31% of Republicans approve of hosting UFC fights on the White House lawn.
  • The White House fears Maggie Haberman and Jonathan Swan's book contains verbatim Situation Room quotes from tapes, as no official has disputed the exact dialogue.
  • Swan's book reveals JD Vance privately opposed the Iran war but publicly supported Trump, while Dan Bongino screamed at the Chief of Staff over the Epstein cover-up strategy.
Also from this episode: (8)

Enterprise (3)

  • The US government issued an export control directive suspending all foreign access to Anthropic's Fable Five and Mythos AI models citing national security concerns.
  • Anthropic claims Amazon CEO Andy Jassy alerted US officials after researchers at Amazon jail-broke Fable Five, prompting the government crackdown.
  • Anthropic had previously spread its Mythos model to 150 organizations across 15 countries before the public release of its successor Fable Five.

Safety (1)

  • Saagar argues AI development needs rigorous oversight akin to drug approval, not ad-hoc crackdowns, citing the disparity between billions in FDA testing and zero scrutiny for frontier AI.

AI & Tech (3)

  • Ed Zitron argues LLMs like Fable Five are oversold hype, inherently limited by hallucinations and unsustainable costs, and do not replace human labor.
  • Zitron claims AI companies are financially unsustainable, with training costs a permanent burden, and market valuations depend on semiconductor hype not real revenue.
  • Zitron predicts an AI bubble collapse will trigger a fundamental revaluation of the tech industry and a permanent breakdown of venture capital, citing the sector's lack of new hypergrowth ideas.

Sports (1)

  • Daniel Cormier tweeted screenshots alleging Eric Trump asked him about rigged fights and fighter injuries ahead of UFC 250, which Cormier later deleted.