Court rejects dev's bid to shield software from money transmitter laws

Pharos developer Michael Lewellen said his lawyers are exploring all options for a path forward after a Texas judge dismissed the case without prejudice.

A Texas court has dismissed a lawsuit filed by crypto developer Michael Lewellen, seeking a declaratory judgment that his software, Pharos, which facilitates donations to charitable crowdfunding campaigns, won’t be prosecuted for violating money-transmission laws. 

Chief US District Judge Reed O’Connor dismissed the case on Wednesday, finding that Lewellen had failed to demonstrate a credible threat of imminent prosecution. 

“Disappointed to see the court dismiss my suit today,” said Lewellen on X on Wednesday. 

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