Dragonfly Capital, a venture firm, is apparently clear of potential legal problems connected to its previous involvement with Tornado Cash, according to Haseeb Qureshi, a co-founder of the company.
In a July 29th message shared on X, Qureshi conveyed that the Department of Justice (DOJ) has formally recognized in court that earlier media reports suggesting possible charges against Dragonfly were inaccurate.
He pointed out that, on July 28th, prosecutors affirmed that neither Dragonfly nor anyone on its team is currently a subject of the ongoing investigation.
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This development follows a July 25th court statement by a federal attorney indicating that possible charges against Tom Schmidt of Dragonfly Capital, among others, were under evaluation.
Back in August 2020, Dragonfly Capital made an investment in the Tornado Cash development effort. Before committing capital, Dragonfly consulted external legal counsel, who validated that Tornado Cash’s operations appeared to be legally compliant at the time.
The legal team representing Roman Storm had intended to have Tom Schmidt testify about the investment and internal discussions at Dragonfly.
However, prosecutors chose not to provide Schmidt legal safeguards for his court testimony. Consequently, he invoked his Fifth Amendment rights and declined to testify.
During the same court proceedings, the possibility of charges against Dragonfly staff was mentioned publicly for the first time by prosecutors. Qureshi asserted that such open speculation breaches DOJ protocol and was likely meant to dissuade Schmidt from providing testimony.
On July 26, Storm put out a request for extra contributions to cover his growing legal bills. Want more information? Get the full details here.
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