{"id":491962,"date":"2025-07-30T22:30:36","date_gmt":"2025-07-30T21:30:36","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=491962"},"modified":"2025-07-31T00:42:18","modified_gmt":"2025-07-30T23:42:18","slug":"doj-clarifies-dragonfly-is-not-a-target-as-tornado-cash-co-founder-trial-nears-conclusion","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/doj-clarifies-dragonfly-is-not-a-target-as-tornado-cash-co-founder-trial-nears-conclusion\/","title":{"rendered":"DOJ clarifies Dragonfly is not a target as Tornado Cash co-founder trial nears conclusion"},"content":{"rendered":"<p>Dragonfly managing partner Haseeb Qureshi revealed that the U.S. Department of Justice (DOJ) will not bring criminal charges against the crypto venture firm, as <a href=\"https:\/\/cryptoslate.com\/coins\/tornado-cash\/\">Tornado Cash<\/a> co\u2011founder Roman Storm\u2019s federal trial in Manhattan neared its conclusion.<\/p>\n<p>Qureshi, whose investment firm backed several blockchain startups, wrote on social media that federal prosecutor Nathan Rehn told the court July 28 that neither Dragonfly nor its principals were targets of the department\u2019s investigation.<\/p>\n<p>He called the public clarification \u201cunprecedented\u201d and \u201ca clear violation of DOJ policy,\u201d citing the Justice Department\u2019s usual practice of keeping target information confidential.\u00a0The development comes days after Qureshi <a href=\"https:\/\/cryptoslate.com\/venture-investor-dragonfly-faces-potential-charges-over-tornado-cash-involvement\/\">publicly denounced<\/a> the DOJ over targeting the firm for backing Tornado Cash in 2020 as part of Storm's trial.<\/p>\n<p>Storm, who co\u2011founded Tornado Cash in 2019 as an open\u2011source protocol to anonymize cryptocurrency transactions, is charged with laundering more than $1\u202fbillion and violating U.S. sanctions against North Korea\u2019s Lazarus Group.<\/p>\n<p>The trial, which began July 14 in U.S. District Court in Manhattan, has <a href=\"https:\/\/cryptoslate.com\/roman-storms-defense-hints-at-mistrial-after-agents-fail-to-trace-funds-stolen-from-witness-to-tornado-cash\/\">heard testimony<\/a> from blockchain tracing experts and former Tornado Cash users. Closing arguments are expected later this week.<\/p>\n<p>Tornado Cash was added to the U.S. Treasury Department\u2019s sanctions list in August 2022, marking the first time a software protocol faced such action. Prosecutors allege Storm personally approved transactions for illicit actors, while defense attorneys argue that the protocol\u2019s code, not its creator, should be judged.<\/p>\n<p>Dragonfly invested in Tornado Cash in 2020 after obtaining an outside legal opinion that the mixer complied with U.S. anti\u2011money\u2011laundering guidance issued by the Financial Crimes Enforcement Network (FinCEN).<\/p>\n<p>The outcome of Storm\u2019s case could reshape how open\u2011source developers are held accountable for user activity. If convicted, Storm faces up to 45 years in prison, a sentence that critics warn could chill innovation in privacy\u2011enhancing tools.<\/p>\n<p>Qureshi wrote:<\/p>\n<blockquote><p>&#8220;With that behind us, the focus should remain on Roman Storm's trial, which is now nearing closing arguments as soon as this week. Its outcome will have massive implications for open-source software and privacy rights in America.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Dragonfly managing partner Haseeb Qureshi revealed that the U.S. Department of Justice (DOJ) will not bring criminal charges against the crypto venture firm, as Tornado Cash co\u2011founder Roman Storm\u2019s federal trial in Manhattan neared its conclusion. Qureshi, whose investment firm backed several blockchain startups, wrote on social media that federal prosecutor Nathan Rehn told the [&hellip;]<\/p>\n","protected":false},"author":1250,"featured_media":491980,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,46940,77968,60793],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>DOJ clarifies Dragonfly is not a target as Tornado Cash co-founder trial nears conclusion<\/title>\n<meta name=\"description\" content=\"Unprecedented DOJ disclosure relieves Dragonfly as Tornado Cash co-founder Roman Storm&#039;s trial enters final phase.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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