U.S. Court Dismisses Legal Protection Suit for Crypto Tool Pharos

A U.S. court has dismissed a lawsuit filed by Michael Lewellen seeking legal protection for Pharos, a non-custodial cryptocurrency tool. According to NS3.AI, the Northern District of Texas ruled that Lewellen did not demonstrate a substantial threat of prosecution, a necessary condition for a pre-enforcement challenge. The court also cited a Department of Justice memo advising prosecutors against pursuing crypto services for end-user actions or unintentional violations. The dismissal was issued without prejudice, allowing Lewellen the option to refile if the risk of enforcement becomes more imminent.