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January 17, 2025

Law Suit vs DOJ: A Fight for Crypto Code Rights

Law Suit vs DOJ: A Fight for Crypto Code Rights

Folks, it looks like we have a new legal drama unfolding in the crypto world. A guy named Michael Lewellen, who’s into crypto security and teaches at Dallas University, has taken it upon himself to sue the U.S. Department of Justice (DOJ). His beef? The DOJ’s way of treating blockchain code as if it were some kind of crime machine. Now, that’s a spicy take, right?

The DOJ’s Approach to Blockchain Code

To give you a bit of background, the DOJ has been on a bit of a crusade against crypto mixers—stuff like Tornado Cash. They want to call these protocols money-transmitting services, which sounds fancy. This has led to all kinds of lawsuits and sanctions against developers, accusing them of writing code that could possibly be used by criminals. The crypto community, unsurprisingly, is not having it. The analogy to car manufacturers being responsible for road accidents is spot on.

There was a flicker of hope when a federal judge ruled that code writers can’t be held liable for creating decentralized protocols. Tornado Cash got removed from the Treasury’s sanctions list, but the drama didn’t stop there. The DOJ is still coming for the devs involved with Tornado and some other mixers.

Implications for Crypto Innovation

Now, here’s where it gets interesting. Lewellen’s lawsuit could change the game for blockchain innovation. If developers are held accountable for how their code is used, who the heck is going to want to build something new? It kind of kills the vibe, right?

Lewellen believes the DOJ has been using vague regulations to scare off developers or even chase them out of the USA. His lawsuit aims to shut that down and let people create without looking over their shoulders.

He’s got three main bones to pick with the DOJ in his complaint:

  1. Statutory Authority: He claims the DOJ doesn’t even have the legal right to go after software creators for running “money-transmitting businesses.” Talk about overreach, huh?

  2. First Amendment: He argues that going after devs for creating code infringes on their First Amendment rights. I mean, writing code is a form of expression, right?

  3. Due Process: He says the DOJ is violating due process with their vague laws and arbitrary enforcement. That’s a lot of uncertainty for someone just trying to code.

Support from Crypto Advocacy Groups

Lewellen’s not going in alone. He’s backed by CoinCenter, a big player in crypto advocacy. They’ve been fighting for developer rights and making sure legal interpretations don’t put a chokehold on innovation.

These advocacy groups are important, folks. They help shape laws and make sure the industry isn’t crushed by overly tight regulations.

What This Means for Crypto Developers

How this all shakes out could have big implications for blockchain development. If the court sides with Lewellen, we might see a world where devs are free from being unjustly prosecuted. If not, well, it could mean more regulations and legal risks.

This case puts a spotlight on the need for a balanced approach to law and technology. Too much regulation could scare off developers, while too little could lead to chaos.

Summary

So there you have it. Michael Lewellen is taking on the DOJ, and this could be a pivotal moment for the crypto industry. It’s a fight for the rights of developers and a chance to ensure innovation doesn’t get snuffed out by outdated laws. Buckle up, because this legal saga is just getting started.

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Egor Romanov
About Author

Egor Romanov is an experienced crypto analyst, professional trader, and author of trading strategies and the Cryptorobotics blog, where he shares his knowledge about cryptocurrencies and financial markets.

Alina Tukaeva
About Proofreader

Alina Tukaeva is a leading expert in the field of cryptocurrencies and FinTech, with extensive experience in business development and project management. Alina is created a training course for beginners in cryptocurrency.

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