DOJ Is Considering Charging Crypto VC Firm Dragonfly in Connection With Tornado Cash
U.S. prosecutors are considering charges against Tom Schmidt of Dragonfly Capital Partners and colleagues for their investment in Pepper Sec Inc., linked to Tornado Cash developers. This development arose during Roman Storm's criminal trial, where Schmidt was called as a witness but invoked the Fifth Amendment. Dragonfly's co-founder, Haseeb Qureshi, stated the firm has cooperated with the DOJ investigation and believes the potential charges are unfounded. Tornado Cash, an Ethereum-based coin mixer, is under scrutiny for allegedly facilitating money laundering. Storm faces up to 45 years in prison for operating an unlicensed money-transmitting business and violating U.S. sanctions. The crypto community argues that developers should not be held liable for user actions. Schmidt's home was raided, and his devices were seized during the investigation.
