The U.S. Department of Justice (DOJ) has explicitly stated that Dragonfly Ventures and its leadership are not targets of its investigation into the cryptocurrency mixer Tornado Cash.
This clarification occurred during ongoing court proceedings focused on Tornado Cash, where prosecutors confirmed Dragonfly’s non-involvement despite the venture firm’s 2020 investment in PepperSec, Inc., developer of the contested privacy tool. The DOJ affirmed that Dragonfly maintained regulatory compliance throughout its association.
Dragonfly co-founder Haseeb Qureshi addressed prior public misrepresentations of the DOJ’s stance, emphasizing that the agency’s courtroom declaration rectifies circulating inaccuracies. The trial itself is centered on accusations of money laundering and sanctions violations tied to Tornado Cash, amid heightened regulatory examination of privacy-centric crypto protocols.