DOJ Is Considering Charging Crypto VC Firm Dragonfly in Connection With Tornado Cash

Key Points

1. Dragonfly invested in Pepper Sec Inc., an entity owned by Tornado Cash developers, in 2020.

2. Dragonfly received a DOJ subpoena in 2023 and claims to have fully cooperated with the investigation.

3. Haseeb Qureshi, a Dragonfly co-founder, stated they believe the DOJ charges are 'absurd and groundless' and will defend vigorously.

4. Tornado Cash developer Roman Storm is facing charges for operating an unlicensed money-transmitting business and violating U.S. sanctions.

5. Federal prosecutors allege Tornado Cash was used by criminals to launder money, though many argue developers should not be held liable for how their code is used.