Dallas Uni lecturer sues DOJ over code-related suits

Crypto security expert Michael Lewellen has sued the U.S. Department of Justice over what he calls its “flawed and unjust” approach to blockchain code development.

Lewellen, a Dallas University lecturer and a Texas Blockchain Council board member, filed the lawsuit against the DOJ in response to the government’s legal crackdown on crypto mixers like Tornado Cash and their developers.

Federal prosecutors have sought to classify protocols like Tornado Cash as money-transmitting services. Lawsuits and sanctions have accused blockchain developers of knowingly writing code that criminals could potentially misuse in the future.

The crypto industry has strongly opposed this interpretation of the law, likening the DOJ’s argument to blaming car manufacturers for road accidents.

A federal judge previously ruled that code writers cannot be held liable for creating decentralized protocols, and Tornado Cash was subsequently removed from the Treasury’s sanctions list. However, Tornado Cash developers and individuals associated with other crypto mixers remain on the DOJ’s prosecution lists.

This lawsuit is about ensuring innovators can create without fear and that laws aren’t misused to hold back progress. For too long, the Biden administration has used a lack of clarity to scare builders away from new technology or force them to leave the USA. That needs to end.

Michael Lewellen on X

Lewellen’s complaint presents three main arguments: the DOJ lacks statutory authority to sue software creators for allegedly running “money-transmitting businesses,” the crackdown infringes on the First Amendment, and the department’s actions violate due process.

The lawsuit is supported by crypto advocacy group CoinCenter and represents the latest industry effort to protect the right to code.