The U.S. government may charge Dragonfly Capital Partners’ Tom Schmidt and colleagues for their investment in Tornado Cash's developer, revealed during Roman Storm's criminal trial. Dragonfly invested in Pepper Sec Inc. in 2020, linked to Tornado Cash. U.S. prosecutors have seized Schmidt's devices and raided his home as part of the investigation. Dragonfly co-founder Haseeb Qureshi stated they complied with the law and expressed confidence that the charges would not materialize, vowing to defend against them. Storm is facing significant charges, including operating an unlicensed money-transmitting business and money laundering, related to Tornado Cash, a coin mixer used to obscure cryptocurrency transactions. The case raises questions about the legal responsibilities of software developers for user actions on their platforms, a concern echoed by the crypto community advocating for privacy and autonomy in financial systems.

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