‘We’ve not identified Dragonfly as a target’ – DoJ reverses course

Key Points

1. The DOJ denied reports that it would charge Dragonfly for backing Tornado Cash, stating such claims were 'inaccurate and misleading.'

2. Dragonfly had pledged to fight potential charges, arguing that prosecuting investors for supporting open-source privacy tools would be unprecedented.

3. Hasseeb Qureshi of Dragonfly criticized the DOJ's initial stance as a 'clear violation of policy' and emphasized the case's broader implications for open-source software and privacy rights.

4. Tornado Cash was previously sanctioned but removed from the U.S. sanctions list in early 2025 after allegations of use by North Korean hackers.