Texas Judge Dismisses Crypto Developer's Request for Software Exemption from Money Transmission Laws

金色财经_ · 2026-03-26T04:41:07+00:00

A Texas court has dismissed a lawsuit filed by cryptocurrency developer Michael Lewellen, who sought confirmation that his software Pharos would not violate money transmission laws. The judge found that Lewellen failed to demonstrate the existence of a prosecutorial threat, leaving Lewellen disappointed. Although a Department of Justice memorandum pledges not to prosecute such services, it fails to provide legal certainty.

金色财经_

2026-03-26 04:41:07

Abstract generation in progress

Golden Finance reports that on March 26, a court in Texas, USA, dismissed a lawsuit filed by crypto developer Michael Lewellen. Lewellen sought a declaratory judgment from the court stating that the software he developed, Pharos (used for charitable crowdfunding donations), would not be prosecuted for violating the Money Transmitter Act. Chief District Judge Reed O’Connor dismissed the case on Wednesday, ruling that Lewellen failed to demonstrate a credible and imminent threat of prosecution.

Lewellen posted on X, saying, “I am disappointed that the court dismissed my lawsuit today.” The court’s dismissal also cited a memo from the U.S. Department of Justice, which states that the DOJ will no longer prosecute virtual currency exchanges, mixing services, or offline wallets for the conduct or unintentional violations of their end users. Lewellen added, “A non-binding DOJ memo cannot replace genuine legal certainty.”

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