Tornado Cash Trial: DOJ Weighs Charges Against More Crypto VC Firms

Dragonfly Capital, the VC Cover Capital, may face accusations by the US Department of Justice (Doj) related to its early investment at Tornado Cash, which has been co -founded.

Fox Eleanor journalist scares I mentioned The federal authorities are considering charges against many individuals in Dragonfly, including the general partner Tom Schmidt.

The role of Dragonfly Capital in Tornado Cash

During the last court session, American lawyer (AUSA) indicated that the charges may extend beyond Schmidt, which leads to a request to close his comments.

Court procedures revealed the exchange of email between the co -founder of Tornado Cash Roman Storm and Dragonfly Partners, Haseeb Qureshi and Tom Schmidt, discussing the potential implementation of Learn about your customer (KYC) Platform Protocols.

These details add another layer to the surrounding scrutiny with the participation of Dragonfly with Tornado Cash, which has been examined over the past years claiming that it is used by bad actors to wash “billions of dollars” in illegal money, including STOLEN.

In response to the ongoing investigation, Haseeb Qureshi moved to the X (previously Twitter) social media platform, to defend the Dragonfly website. he Explained The company invested at Peppersec, Tornado Cash developer, in August 2020, referring to the belief in the importance of open source privacy techniques.

Quraishi stressed that before investment, Dragonfly obtained an external legal opinion confirming that Tornado Cash was compatible with the current laws, and the Finan Crime Enforcement Network explained in 2019.

Warning from a dangerous precedent

According to the US Department of Justice, the US Department of Justice in the Open court is that they are considering charges against dragonfly Based on her investments in the Tornado Cash team. Quraishi expressed concern about this possible path of work, on the pretext that he will determine a dangerous precedent.

He emphasized that Dragonfly had no operational control over Tornado Cash, and did not maintain any contact with any harmful users, and encouraged compliance with legal standards between their governor companies.

Moreover, Quraishi indicated that obtaining fees against the investment capital company for the alleged wallet company will be unprecedented and can have a chilling effect Technology sectors.

He stressed that Dragonfly was completely cooperated with the Ministry of Justice, saying that the company was never a target of investigation and has always been in legal guidelines.

In light of the potential charges, Quraishi expressed confidence in the legal dragon position, stressing that any attempts to sue the company will be baseless and contrary to the facts.

He pointed out that the government’s statements in the court can aim to undermine the Tornado Cash defense, which makes it difficult for Schmidt to testify.

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