#U.S. Attorney General Indicted#
Hot Topic Overview
Overview
U.S. Attorney General Merrick Garland is facing a lawsuit over his department’s prosecution of cryptocurrency software developers. A Texas man has sued Garland, asking a court to guarantee that the Justice Department will not prosecute his forthcoming cryptocurrency project for violating the Money Transmitters Act. The lawsuit argues that the Justice Department’s prosecution of cryptocurrency developers violates the Constitution, and claims that the Justice Department’s prosecution of cryptocurrency developers “betrays its representations to the public.” The lawsuit comes amid growing concerns about the government’s persecution of developers of crypto privacy software, both in the United States and abroad. Garland is set to leave office soon, and his successor will automatically become the defendant in the lawsuit.
Ace Hot Topic Analysis
Analysis
U.S. Attorney General Merrick Garland is facing a lawsuit from Coin Center researcher Michael Lewellen, who is seeking court assurance that the Department of Justice will not prosecute his upcoming cryptocurrency project, Pharos, for violating the Money Transmission Act. Lewellen accuses the Justice Department of unconstitutionally pursuing criminal charges against cryptocurrency software developers, claiming that the DOJ’s prosecution of cryptocurrency developers “betrays its statements to the public” that they will not be prosecuted as money transmitters unless they have “full independent control” over the value transferred. Lewellen's suit comes amidst growing concerns over government persecution of crypto privacy software developers, as Tornado Cash's Storm and Samourai Wallet's Rodriguez both face criminal charges for creating cryptocurrency mixing services. Lewellen's lawsuit seeks to avoid a similar fate, as his Pharos project will use smart contracts to ensure donors automatically get their funds back if the project is underfunded, and will have privacy features to protect donor identities. Lewellen emphasizes that he will not control the cryptocurrency passing through Pharos and therefore should not be considered a money transmitter. As Garland is set to leave office, his successor will become the named defendant in the lawsuit.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The Justice Department’s criminal prosecution of cryptocurrency developers violates the Constitution, in violation of the First and Fifth Amendments.
The Justice Department’s prosecution of cryptocurrency developers betrays its statements to the public that it would not prosecute developers as money transmitters unless they had “full independent control” over the value transferred.
Concerns about the government’s persecution of developers of encryption privacy software are growing, both in the US and abroad.
In the absence of a clear regulatory and legal framework for cryptocurrencies, preemptive lawsuits like that against Lewellen are becoming increasingly common.