A Coin Center fellow has filed a lawsuit against US Attorney General Merrick Garland, seeking a judicial guarantee that the Department of Justice will not prosecute his upcoming cryptocurrency project for violating money transmission laws. The lawsuit, filed by blockchain entrepreneur Michael Lewellen, argues that the Department of Justice's prosecution of software developers who create non-custodial cryptocurrency software is unconstitutional and infringes on the First and Fifth Amendments.
Lewellen's lawsuit comes amid growing concerns about government persecution of cryptocurrency privacy software developers. His project, Pharos, is a cryptocurrency-based crowdfunding platform that utilizes smart contracts to ensure donors receive refunds if projects are not fully funded, and features privacy measures to protect donor identities. As the creator and publisher of Pharos, Lewellen will only receive a predetermined fee from successful projects and will not have control over the cryptocurrency transactions. The lawsuit aims to prevent Lewellen from facing a similar fate as other developers, such as Roman Storm and Keonne Rodriguez, who are currently facing prosecution for their work on cryptocurrency mixing services and wallets.