The U.S. Department of Justice (DOJ) is contemplating charges against Dragonfly Capital Partners and its executives, including Tom Schmidt, related to their investment in Tornado Cash developers. This consideration arose during the trial of Tornado Cash developer Roman Storm, where Assistant U.S. Attorney Thane Rehn disclosed the DOJ's intentions. Dragonfly previously invested in Pepper Sec Inc., owned by Tornado Cash developers, in 2020. Schmidt's house was raided, and his devices were seized as part of the investigation. Haseeb Qureshi, co-founder of Dragonfly, expressed confidence that the charges are unfounded and stated the firm has cooperated with the investigation. Meanwhile, Storm faces serious legal consequences, including charges for operating an unlicensed money transmitter and money laundering. The case raises significant questions about the accountability of software developers for user activities on their platforms, highlighting ongoing debates within the crypto community regarding privacy and legal responsibilities in the blockchain space.

Source 🔗