Crypto Industry Challenges DOJ Over Developer Prosecution

A coalition of cryptocurrency advocacy groups has criticized the U.S. Department of Justice (DOJ) for allegedly misusing legal provisions in its case against developer Michael Lewellen. On July 7, Paradigm, a crypto investment firm, joined the alliance, filing an amicus brief to contest the DOJ's stance on open-source code publication by software developers. The coalition, which includes the DeFi Education Fund, Blockchain Association, Crypto Council for Innovation, the Digital Chamber, the Solana Policy Institute, the Bitcoin Policy Institute, and the Uniswap Foundation, supports Lewellen. He developed a non-custodial crypto protocol and made its code publicly available, an act the DOJ mistakenly equated with money transmission. The coalition argues that the DOJ's prosecution is unfounded, accusing it of misapplying Section 1960 of Title 18 of the U.S. Code. They highlight the government's aggressive targeting of peer-to-peer crypto software developers, even those adhering to legal advice and guidelines, putting them at risk of indictment, as seen in the case of Roman Storm. Paradigm emphasized the broader implications, stating, 'The government's position not only misinterprets the law but also endangers the future of neutral crypto infrastructure in the U.S., potentially driving innovation abroad.' The coalition calls for clearer legal guidelines to prevent unjust prosecutions and safeguard innovation, warning that continued ambiguity could erode trust in U.S. law and push developers to relocate overseas.