The US Department of Justice (DOJ) has confirmed that it is not investigating Dragonfly Ventures or its executives regarding the firm’s investment in Tornado Cash. Haseeb Qureshi, co-founder of Dragonfly, stated that the DOJ clarified during a recent trial that previous media reports suggesting potential charges against the firm were inaccurate. He shared trial transcripts indicating that prosecutors acknowledged misinformation surrounding the DOJ's stance on Dragonfly. This development comes after prosecutors speculated about Dragonfly’s involvement in the Tornado Cash case, leading Qureshi to describe the suggestion as unprecedented and contrary to DOJ policy. Dragonfly had previously invested in Tornado Cash's developer, PepperSec, Inc., and Qureshi emphasized that the firm had sought legal counsel prior to investing, confirming Tornado Cash's compliance. The case against Tornado Cash developers continues, with charges related to money laundering and sanctions violations having been levied in August 2023. Dragonfly's position reflects a broader ongoing legal discourse regarding privacy-preserving technology.

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