The U.S. government is contemplating criminal charges against Dragonfly Capital Partners due to their investment in Tornado Cash developer Roman Storm’s company, Pepper Sec Inc., according to Assistant U.S. Attorney Thane Rehn. This disclosure occurred during Storm's trial in New York, where he faces severe allegations linked to money laundering and operating an unlicensed money-transmitting business through Tornado Cash, a cryptocurrency mixer. Dragonfly co-founder Haseeb Qureshi emphasized their compliance with the law and expressed confidence that the charges are unfounded. Dragonfly’s involvement with Storm included exchanges on integrating know-your-customer (KYC) features for compliance with U.S. regulations. While Schmidt pleaded the Fifth Amendment to avoid self-incrimination when called to testify, it remains to be seen whether he will maintain this stance in court. The case holds significant implications for software developers regarding liability for coding practices, particularly surrounding privacy and user autonomy in decentralized applications.

Source 🔗