Fellow at Coin Center Sues DOJ Over Crypto Prosecution Concerns
Michael Lewellen, a fellow at Coin Center, has filed a lawsuit against U.S. Attorney General Merrick Garland. The suit aims to prevent the Department of Justice (DOJ) from prosecuting his upcoming crypto project, Pharos, under money transmitting laws.
- The lawsuit argues that the DOJ's prosecution of software developers violates the First and Fifth Amendments.
- It claims the DOJ's actions contradict its public statements regarding the criteria for being considered money transmitters.
- Lewellen's suit highlights concerns over the treatment of crypto privacy software developers in the U.S. and internationally.
- Prosecutions of Tornado Cash developer Roman Storm and Samourai Wallet co-founder Keonne Rodriguez are cited as examples of government overreach.
- Pharos is a crowdfunding platform on Ethereum that utilizes "assurance contracts" to refund donors if projects don't meet funding goals and ensures donor privacy.
- Lewellen asserts he will not control the cryptocurrency processed through Pharos.
- A change in leadership at the DOJ may affect the lawsuit; Garland's successor will take over as the named defendant.