#Encrypted Developers Sue Attorney General#

Michael Lewellen, a researcher at cryptocurrency think tank Coin Center, has sued U.S. Attorney General Merrick Garland in Texas, seeking a court order to guarantee that the Justice Department will not prosecute his forthcoming cryptocurrency project Pharos for violating the Money Transmission Act. Lewellen claims that the Justice Department’s criminal prosecutions of software developers who release non-custodial cryptocurrency software, such as the prosecutions of Tornado Cash developer Roman Storm and Samourai Wallet co-founder Keonne Rodriguez, are unconstitutional and violate the First and Fifth Amendments. He argues that the Justice Department’s prosecution of cryptocurrency developers “betrays its representations to the public” that they will not be treated as money transmitters unless they have “complete independent control” over the value being transferred. Lewellen's lawsuit comes amidst growing concern over government persecution of cryptocurrency privacy software developers, both in the United States and abroad. Lewellen’s lawsuit seeks to avoid the fate of Rodrigez and Storm, who are facing up to 45 years and 25 years in prison, respectively, for crimes related to their work on cryptocurrency mixing services. The Pharos project is a cryptocurrency-based Kickstarter that will use smart contracts to ensure that donors automatically get their money back if the project is underfunded, and it will feature privacy features to protect donor identities. Lewellen, as the creator of the software, will not control the cryptocurrency flowing through Pharos, and he will only receive a pre-determined fee if the project is successful. The lawsuit is timely as Garland is set to leave office, and his successor will automatically become the named defendant in the lawsuit.