In January 2025, Michael Lewellen filed a preenforcement complaint against the DOJ for capriciously prosecuting noncustodial software developers as money transmitters under 18 U.S.C. §1960, a federal statute which proscribes failing to register as a “money transmitting business.”
On July 7, 2025, DEF filed an amicus brief, arguing that (1) software developers do not “transmit” money on behalf of the public; (2) the government is wrongly prosecuting developers under a novel and incorrect interpretation of §1960; and (3) the government’s improper interpretation of §1960 is chilling innovation in the crypto industry.
Status: Ongoing