The U.S. Department of Justice is contemplating criminal charges against Dragonfly Capital Partners and some of its partners over their investment linked to Tornado Cash, a controversial Ethereum-based coin mixer. This revelation emerged during the trial of Tornado Cash developer Roman Storm, where prosecutors indicated that Dragonfly's involvement, particularly their investment in Pepper Sec Inc., the developer's firm, could make them liable. Dragonfly's co-founder, Haseeb Qureshi, stated that the firm has cooperated with the DOJ's investigation and expressed confidence that any charges would be unfounded. Meanwhile, during the trial, Dragonfly partner Tom Schmidt invoked the Fifth Amendment when called to testify. The case has highlighted significant legal questions related to the responsibility of software developers for users' actions on their platforms, amidst growing governmental scrutiny of decentralized finance (DeFi) projects.

Source đź”—