The U.S. government is contemplating criminal charges against Dragonfly Capital Partners and its executives, including Tom Schmidt, in relation to their investment in Tornado Cash developers. This announcement was made during the criminal trial of Roman Storm, a developer of the Ethereum-based coin mixer. Dragonfly invested in an entity tied to Tornado Cash in 2020 and has cooperated fully with the DOJ's investigation. Schmidt’s home was raided, and his devices were seized during this inquiry. In his defense, Haseeb Qureshi, Dragonfly’s co-founder, expressed confidence that the allegations are without merit and indicated that they would vigorously contest any charges. The case at hand raises important questions about the legal responsibilities of software developers in relation to user actions on their platforms, a topic of much debate in the cryptocurrency community.

Source 🔗