Dragonfly partners could face DOJ charges as Tornado Cash Roman Storm's trial continues
- The US DOJ is reportedly considering charges against Dragonfly partners Tom Schmidt and Haseeb Qureshi.
- The charges could include their investment and backing of Tornado Cash and its founder, Roman Storm.
- Dragonfly's Haseeb stated that the firm would defend itself if the DOJ proceeds with the charges.
Dragonfly Capital may face charges from the US Department of Justice (DOJ) regarding its early investment in Tornado Cash, managing partner Haseeb Qureshi confirmed on Friday.
Dragonfly faces potential charges due to ties with Tornado Cash founder Roman Storm
Dragonfly Capital could be the next crypto firm to face federal prosecution due to its early involvement with Tornado Cash and its co-founder, Roman Storm.
Assistant US Attorney (AUSA) Thane Rehn reportedly stated in a court session on Friday that investigations could begin into Dragonfly Capital, including its General Partner, Tom Schmidt, and Managing Partner, Haseeb Qureshi, according to Inner City Press.
Qureshi emphasized in an X post on Friday that Dragonfly initially supported Tornado Cash due to its privacy-focused technology and compliance with FinCEN law.
"We made this investment because we believe in the power of privacy-preserving technology," Qureshi wrote.
He also shared that Dragonfly had no involvement in any of the charges laid against Tornado Cash or its founder, Roman Storm, and exercised "no control" over the protocol's operations.
The DOJ charged Storm and co-founder Roman Semenov in August 2023 with money laundering, conspiracy to violate sanctions and operating an unlicensed money transmitting business. The protocol was accused of facilitating over $1 billion in money laundering transactions in connection with North Korea's Lazarus Group.
The DOJ stated in May that it would drop part of the original indictment against Storm, but would proceed to trial with the remaining claims. The trial, which began earlier in July, has drawn the involvement of Dragonfly and its partners Schmidt and Qureshi.
AUSA Rehn allegedly provided emails between Roman Storm, other Tornado co-founders, and Dragonfly in court on Thursday. The emails centered around Storm and his team requesting feedback on adding KYC to the protocol, according to Inner City Press.
Qureshi pushed back against the recent court development, stating that the firm is prepared to defend itself if charges are brought against it.
"We don't believe the DOJ would actually bring such absurd and groundless charges. But if they do, we intend to vigorously defend ourselves," wrote Qureshi.
Many crypto industry figures, including Ethereum co-founder Vitalik Buterin, have donated toward the defense of Roman Storm.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
