TechFlow News, March 26: According to Cointelegraph, U.S. District Judge Reed O’Connor of the Northern District of Texas dismissed on Wednesday a lawsuit filed by cryptocurrency developer Michael Lewellen. The suit sought a declaratory judgment confirming that his donation-based crowdfunding software, Pharos, falls outside the scope of money transmission laws. The court ruled that Lewellen failed to demonstrate a real and imminent threat of prosecution and cited a Department of Justice (DOJ) memorandum indicating that the DOJ no longer pursues enforcement actions against end-user activities involving virtual currency exchanges, mixing services, or offline wallets.
The case was dismissed “without prejudice,” allowing Lewellen to refile the suit after amendments. Lewellen stated that his legal team is exploring next steps.
