The U.S. Department of Justice (DOJ) is contemplating criminal charges against Dragonfly Capital Partners, particularly its partner Tom Schmidt, related to their investment in Tornado Cash developers. This revelation occurred during the criminal trial of Tornado Cash developer Roman Storm, where Assistant U.S. Attorney Thane Rehn highlighted the government's interest in pursuing charges. Dragonfly had previously invested in Pepper Sec Inc., a company owned by Tornado Cash developers, raising concerns about regulatory compliance. Dragonfly's co-founder Haseeb Qureshi claims they have cooperated fully with the DOJ investigation and argue that any potential charges are unwarranted. Schmidt was compelled to plead the Fifth Amendment during the trial, protecting him from self-incrimination. The case against Storm, who faces severe legal penalties, raises significant questions about the accountability of software developers for activities conducted on their platforms, with many in the crypto community advocating for the protection of privacy and development autonomy.

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