A member of crypto think tank Coin Center filed a lawsuit against U.S. Attorney General Merrick Garland on Thursday, asking a judge to ensure that the Department of Justice (DOJ) will not be able to pursue his next crypto project for violation of laws on money transmission in the future.
The lawsuit, filed by blockchain entrepreneur Michael Lewellen, claims that criminal charges brought by the Department of Justice (DOJ) against software developers who release non-custodial cryptocurrency software – including ongoing lawsuits against Tornado Cash developer Roman Storm and Samourai Wallet co-founder Keonne Rodriguez – are unconstitutional and violate the First and Fifth Amendments.
In addition to being unconstitutional, the suit claims, the DOJ’s prosecution of crypto developers “betrays[s] its own representations to the public,” that unless promoters have “completely independent control over the value” displaced, they are not acting as money transmitters.
Lewellen’s suit comes amid growing concerns about government persecution of crypto privacy software developers, both in the United States and abroad. Tornado Cash’s Storm faces up to 45 years in prison if convicted on all charges related to his work with the crypto mixing service; Rodriguez faces a maximum sentence of 25 years for creating Samourai Wallet. Both men have pleaded not guilty and will stand trial this year.
In the absence of a clear regulatory and legal framework for cryptocurrencies, preemptive lawsuits like Lewellen’s are becoming increasingly common. Last year, two NFT artists filed suit against the U.S. Securities and Exchange Commission (SEC) seeking a similar declaratory judgment protecting them from civil penalties from the SEC.
Read more: Does the SEC Really Have Jurisdiction Over NFT Art? Two artists sue SEC for response
Using his costume, Lewellen attempts to avoid the fate of Rodrigez and Storm. His next project, Pharos, is essentially a crypto-based Kickstarter. Built on Ethereum, its crowdfunding platform will use a type of smart contracts it calls “insurance contracts” to ensure that backers will automatically get their money back if the project is not fully funded. The project will also have privacy features that prevent a project’s donors from being publicly identifiable.
As the creator and publisher of Pharos software, Lewellen will only receive predetermined compensation for successful projects. According to his lawsuit, “he will never have control of the cryptocurrency that passes through Pharos.”
Garland, appointed by President Joe Biden, will soon leave the DOJ. Incoming President Donald Trump’s choice to replace Garland as attorney general, former Florida Attorney General Pam Bondi, is currently the subject of nomination hearings. Garland’s successor will automatically be replaced as named defendant upon his departure from the DOJ.
