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Texas Court rejects developer Pharos's request for exemption from the Money Transmission Law.
Deep Tide TechFlow News, March 26 — According to Cointelegraph, Chief Judge Reed O’Connor of the U.S. District Court in Texas dismissed a lawsuit filed by crypto developer Michael Lewellen this Wednesday. The lawsuit aimed to seek a declaratory judgment confirming that his fundraising software Pharos is not subject to money transmission laws. The court found that Lewellen failed to demonstrate a real and imminent threat of prosecution and cited a Department of Justice memo indicating that the DOJ is no longer pursuing charges against virtual currency exchanges, mixing services, or end-user behavior involving offline wallets.
The case was dismissed “without prejudice,” allowing Lewellen to refile after making amendments. Lewellen stated that his legal team is exploring subsequent responses.