The U.S. government may pursue criminal charges against Dragonfly Capital Partners related to their investment in Tornado Cash developers. During Tornado Cash developer Roman Storm's trial, Assistant U.S. Attorney Thane Rehn mentioned this possibility, leading to a raid on Dragonfly's Tom Schmidt's home and the seizure of his devices. Dragonfly had previously invested in Pepper Sec Inc., associated with Tornado Cash, in 2020. Dragonfly's co-founder, Haseeb Qureshi, expressed confidence in their compliance with the law and the expectation that the charges would not materialize. The ongoing trial of Roman Storm highlights legal responsibilities for software developers concerning user actions on their platforms, as Tornado Cash has faced scrutiny for allegedly facilitating money laundering. Storm could face up to 45 years in prison if convicted.

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