A blockchain entrepreneur, Michael Lewellen, has filed a lawsuit against U.S. Attorney General Merrick Garland, seeking a court order to protect his upcoming cryptocurrency crowdfunding project from potential prosecution under unlicensed money transmitting laws. The suit argues that the Department of Justice (DOJ) has unconstitutionally prosecuted software developers like Tornado Cash’s Roman Storm and Samourai Wallet’s Keonne Rodriguez for their roles in publishing noncustodial cryptocurrency software.
Lewellen’s case posits that the DOJ’s actions are a contradiction to its public assurances that developers who lack complete control over the value transferred are not considered money transmitters. With increasing scrutiny on the prosecution of crypto developers, Lewellen’s lawsuit highlights the fears of government overreach in the rapidly evolving crypto space.
His project, named Pharos, aims to function like a cryptocurrency-based Kickstarter, incorporating smart contracts that promise automatic refunds if projects fail to meet funding goals. Privacy features are also a key component, ensuring donor anonymity. Lewellen specifies that he will not have control over the cryptocurrency transactions on his platform, further distancing himself from the typical roles associated with money transmitting.
With Garland’s expected departure from the DOJ, Lewellen’s suit will likely see a new attorney general take over as the defendant.
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