The US Department of Justice (DOJ) has clarified that it is not conducting an investigation into the venture firm Dragonfly Ventures and its executives related to their investment in Tornado Cash.
DOJ's Position
The DOJ stated during a trial on Monday that they are not targeting Dragonfly in their investigation. Haseeb Qureshi, Dragonfly’s co-founder, mentioned in a social media post that this fact was confirmed by officials. "The DOJ has now backtracked," he wrote, highlighting that media reports of potential charges were inaccurate.
Investment in Tornado Cash
Qureshi defended Dragonfly's investment in Tornado Cash's developer, PepperSec, Inc., emphasizing that the firm made investments based on outside legal counsel's assurances that Tornado Cash was compliant with legal standards. "We made this investment because we believe in the importance of open-source privacy-preserving technology," he stated.
Legal Cases and Charges
In August 2023, Tornado Cash developers Roman Storm and Roman Semenov were indicted on charges of money laundering and sanctions violations. The legal proceedings continue, and Storm has appealed for additional funding to cover legal costs, which have reportedly increased to $1.5 million.
Thus, the DOJ has confirmed that Dragonfly Ventures is not a target of their investigation, potentially alleviating concerns surrounding the firm's legal standing.
