Blockchain developer Michael Lewellen has filed a lawsuit against the U.S. Department of Justice (DOJ), accusing the agency of criminalizing crypto development through an expansive interpretation of federal money-transmission laws. The lawsuit seeks to protect his decentralized crowdfunding platform, Pharos, which utilizes 'assurance contracts' via smart contracts and operates on a non-custodial basis, meaning Lewellen does not control user funds. He argues that the DOJ's classification improperly labels non-custodial software developers as unlicensed money transmitters, violating First and Fifth Amendment rights. The case references the prosecutions of other developers, including Tornado Cash creator Roman Storm and Samourai Wallet founders, highlighting a concern that regulatory actions are stifling innovation in the crypto space. Lewellen asserts this case is critical for the future of cryptocurrency development in America, amidst the Biden administration's crackdown on crypto projects.

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