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Blockchain entrepreneur sues the U.S. Department of Justice, seeking legal protection for cryptocurrency crowdfunding projects.

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Jan 17, 2025

Blockchain entrepreneur Michael Lewellen has filed a lawsuit against U.S. Attorney General Merrick Garland, seeking a court ruling that his upcoming cryptocurrency crowdfunding project, Pharos, does not violate the unlicensed money transmission laws. Lewellen accuses the Department of Justice of violating the First and Fifth Amendments of the U.S. Constitution by prosecuting cryptocurrency software developers, such as Tornado Cash developer Roman Storm and Samourai Wallet co-founder Keonne Rodriguez, which contradicts the Department's previous public statements that developers are not considered money transmitters. Pharos is an Ethereum-based cryptocurrency crowdfunding platform that utilizes smart contracts to ensure that projects that fail to raise funds automatically refund the contributions and protect donors' privacy.

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