U.S. Department of Justice building in Washington, D.C, on January 12, 2022. Photo: Diego M. Radzinschi/ALMCrypto Entrepreneur Claims Justice Department’s Software Crackdown Violates US Constitution
“By filing this complaint now, you still get to have your flashy lawsuit and get into federal court without taking on and making enemies with a new administration," said Tony Phillips, a partner at Pillsbury Winthrop Shaw Pittman who is not involved in the matter.
January 16, 2025 at 08:27 PM
4 minute read
What You Need to Know
- Michael Lewellen is a Dallas-based blockchain expert and cryptocurrency entrepreneur.
- Ahead of the launch of a new business, Lewellen sued the U.S. Department of Justice for allegedly criminalizing software development.
- An expert not involved in the matter said there was an advantage to filing this complaint now, versus when a new administration takes power on Monday.
Michael Lewellen, a Dallas-based blockchain and cryptocurrency entrepreneur, filed a constitutional challenge against the U.S. Department of Justice in the U.S. District Court for the Northern District of Texas on Thursday over its alleged criminalization of software development under the Biden Administration.
Lewellen, represented by Consovoy McCarthy, a small conservative law firm that has frequently argued before the U.S. Supreme Court, plans to launch Pharos, a decentralized cryptocurrency platform designed for crowdfunding campaigns. Unlike traditional financial intermediaries, it is “non-custodial,” meaning that Lewellen will not control or manage user funds—features he claimed place his software outside the scope of federal money-transmitting regulations.
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