The post Crypto Lobby Backs Dev Suing DOJ Over Open-Source Code Prosecution appeared on BitcoinEthereumNews.com.

A coalition of crypto advocacy groups threw its weight behind a federal lawsuit challenging US Department of Justice (DOJ) efforts to prosecute open-source software developers under money transmission laws. Crypto investment firm Paradigm, the DeFi Education Fund, Blockchain Association, Crypto Council for Innovation and others filed an amicus brief on Monday in support of Michael Lewellen, a developer who built a non-custodial DeFi protocol and plans to release it publicly. The groups argue that the DOJ is misusing Section 1960 of title 18 of the US Code, a statute originally intended to regulate unlicensed money transmitters, by extending it to developers of decentralized software. “The Government is actively prosecuting multiple developers of peer-to-peer cryptocurrency software […] even if those developers simply publish open-source software,” the filing said. Pardigm files an amicus brief to support developer Lewellen against the DOJ. Source: Paradigm Related: Judge signals Tornado Cash sanctions may be barred from Roman Storm trial DOJ slammed for targeting crypto coders The brief criticizes the DOJ’s interpretation of “money transmitting” to include developers who write code for tools others use to transact independently. It compares the DOJ’s approach to prosecuting a frying pan manufacturer for what someone cooks in it. “By its plain meaning, § 1960 does not stretch that far… one cannot ‘transmit’ or ‘transfer’ funds on someone’s behalf without accepting and relinquishing custody or control,” the brief reads. The brief argues that the DOJ’s stance has sown legal uncertainty, discouraging developers from building privacy-enhancing tools or decentralized financial infrastructure. The lobby group warned that if the legal environment doesn’t change, innovation will migrate offshore. “Faced with possible prosecution […] developers of peer-to-peer cryptocurrency transfer software will choose to either move offshore or stop creating their tools altogether.” The filing comes as the DOJ continues to pursue cases like US…

---

Filed under: News - @ July 9, 2025 8:32 pm