The Dragonfly Capital may be the target of federal charges derived from its early investment in the Tornado Cash Developer Peppersec, Inc., but the venture firm said it is ready to “diligently defend” itself if the prosecutors pursue the case.
On a social media on Friday PostDragonfly Capital’s management partner Haseeb Qureshi defends the early backing of the Tornado Cash firm-an open-source protocol that allows users to blur Blockchain-Block Transactions-from August 2020.
“We have made this investment because we believe in the importance of open-source privacy-preserving technology,” said Qureshi, adding that the company would consult outside of legal advice before investing and ensuring that Tornado Cash follows.
Despite this legal opinion, Tornado Cash Developers Roman Storm and Roman Semenov are Said with violations of the US Attorney’s Office’s money laundering and penalties for the Southern District of New York in August 2023.
The criminal storm test was conducted in New York, where he faced federal charges that could results in more than 40 years in prison.
On Friday, prosecutors indicated that they could pursue charges against Dragonfly for its investment in the Tornado Cash Team five years ago.
“We believe the government’s statement to the court today is primarily to break the cash tornado,” said Qureshi, adding that carrying charges after all this time would be “extremely angry.”
“We do not believe that the DOJ will actually bring such an absurd and no basic charge. But if they do, we intend to vigorously defend ourselves,” he added.
Related: Ethereum Core Developer testifies to Roman Storm Defense as Gov’t Rests Case
Devs claims Tornado Cash is a privacy tool, but prosecutors don’t buy it
Tornado Cash developers described the platform as a decentralized, non -custodial privacy tool that enabled users to send and receive digital assets without revealing their purse history.
Often referred to as a “mixer,” it has poured up cryptocurrencies from many users before re -re -given them, effectively destroying the direct link between sending and receiving addresses.
In 2022, the US Treasury Department’s Foreign Assets Control (OFAC) office (OFAC) Permitted Tornado Cash. The tool was also accused of obfuscating illicit transactions.
Despite the penalties and. Criminal Investigations, Cash Tornado saw a resurrection in 2024. Data from Flipside Crypto showed $ 1.9 billion in deposits In the first six months of that year.
https://www.youtube.com/watch?v=realmh3vwwg
Related: Judge allows testimony to changes to ‘possible’ cash code changes
