US Judge Dismisses Lawsuit on Noncustodial Crowdfunding Software

A U.S. federal judge has dismissed a lawsuit filed by Michael Lewellen, who sought legal protection for publishing noncustodial crowdfunding software. According to NS3.AI, Lewellen argued that without this protection, he faced the risk of up to five years in prison. However, Judge Reed O’Connor ruled that Lewellen had not demonstrated an imminent threat of prosecution. The judge noted that Lewellen's case differed from other developer cases that involve allegations of money laundering. This decision comes amid ongoing legislative efforts to establish comprehensive crypto regulations, which are anticipated to include specific protections for DeFi developers.