What Legal Precedents Exist for Holding Unincorporated Associations or Software Developers Liable for Financial Crimes?

Legal precedents are sparse but growing. In the U.S. regulators have pursued actions against founders and developers of crypto mixers and DeFi protocols, often under the theory that they are operating as unlicensed money transmitters.

For example, the case against the founders of BitMEX and the sanctions against Tornado Cash developers indicate a willingness by authorities to pierce the veil of decentralization. Courts may look to laws governing general partnerships or unincorporated associations, where members can be held personally liable for the organization's activities, especially if they profit from them.