Crypto Industry Backs Lawsuit Over DOJ Code Crackdown
Key Takeaways
Crypto Groups Defend Open-Source Development: Leading industry organisations like Paradigm, the Blockchain Association, and the DeFi Education Fund have filed legal support for developers facing DOJ scrutiny, arguing that publishing open-source code is protected by the First Amendment.
Legal Challenge Centres on Free Speech Rights: The lawsuit asserts that writing and sharing code—especially for non-custodial, decentralised protocols—should not be criminalised, emphasising the role of code as a form of expression.
Potential Chilling Effect on Innovation: Advocates warn that the DOJ’s actions could deter developers from building privacy-preserving or decentralised tools, threatening innovation across the crypto and Web3 ecosystem.
A growing coalition of cryptocurrency advocacy groups is backing a lawsuit targeting the US Department of Justice (DOJ) for what they call a dangerous precedent: criminalising the publication of open-source software.
Overview
On Monday, the crypto groups submitted an amicus brief supporting Michael Lewellen, a developer who created a non-custodial DeFi protocol and intends to make it publicly available.
The filing noted, “The government is actively prosecuting multiple developers of peer-to-peer cryptocurrency software […] even if those developers simply publish open-source software.”
The legal challenge also stems from the DOJ’s prosecution of Bitcoin (BTC) developer Roman Storm, one of the co-founders of Tornado Cash, a privacy-focused crypto mixing protocol. Storm and fellow developer Roman Semenov were charged in 2023 with conspiracy to commit money laundering and sanctions violations due to their work on the tool.
Initially filed by the nonprofit Coin Centre in a US federal court, the lawsuit argues that punishing developers for writing and publishing open-source code violates the First Amendment. Coin Centre, alongside a growing list of supporters including the Blockchain Association and the DeFi Education Fund, insists that the government is attempting to hold developers accountable for how their code is used, even when they do not directly control the application or its deployment.
“This is a clear threat to free expression and technological innovation,” said Coin Centre’s communications director Neeraj Agrawal. “Writing and sharing code should never be treated as a criminal act.”
Legal Debate Centres on Code as Free Speech
The core of the legal dispute is a fundamental question: Should open-source code be protected as free speech under the US Constitution? The lawsuit argues that code, much like books, music, or film, is a medium of expression and thus falls under First Amendment protections. According to Coin Centre’s legal team, the DOJ’s enforcement oversteps its bounds by criminalising the neutral act of publishing code, particularly when developers are not profiting from or facilitating illicit use.
The DOJ, however, contends that Tornado Cash operated as an unregistered money transmitter and knowingly facilitated the laundering of over $1 billion in illicit funds, including assets tied to North Korean hackers. Prosecutors argue that despite being open-source, Tornado Cash functioned as a financial service and was directly involved in illegal activities. Still, critics say the DOJ’s framing fails to distinguish between building tools and operating criminal enterprises.
“Developers can’t be responsible for every possible use of their software,” said Miller Whitehouse-Levine, CEO of the DeFi Education Fund. “This case could have a chilling effect on developers, especially those building privacy or decentralised tools.”
Industry Fears Chilling Impact on Innovation
The broader crypto industry is watching the case closely, fearing it could undermine the foundational principles of blockchain development, which rely heavily on open collaboration and open-source software. Privacy advocates, too, argue that targeting privacy tools under the guise of sanctions enforcement sets a dangerous precedent that could extend far beyond the crypto sector. The Blockchain Association, a leading industry trade group, filed an amicus brief supporting Coin Centre’s lawsuit.
The brief states that the DOJ’s actions amount to “an unconstitutional attempt to control what Americans can say and what software they can share.”
The group warns that upholding the DOJ’s interpretation could deter innovation in privacy-preserving technologies and decentralised finance platforms. Meanwhile, Roman Storm continues to fight the charges in court, while his co-developer, Semenov, remains at large and has been added to the US sanctions list. Legal experts expect the case to take years to resolve and potentially reach the Supreme Court due to its implications for free speech, privacy, and software development.
As the lawsuit gains momentum, more developers and advocacy organisations are speaking out, calling on the courts to uphold long-standing protections for software creators. For now, the case marks a pivotal clash between national security enforcement and digital rights in the Web3 era—one that could shape the future of crypto development in the US and beyond.