The US Department of Justice is not investigating Dragonfly Ventures or its executives over past investments in Tornado Cash. DOJ confirmed during a trial that Dragonfly is not a target in their investigation, backtracking on media reports. Dragonfly vows to defend itself vigorously against scrutiny related to Tornado Cash investment.

DOJ prosecutors hinted at potential charges against Dragonfly for investing in Tornado Cash developer PepperSec, Inc. Dragonfly co-founder Qureshi called the suggestion unprecedented and a violation of DOJ policy. Dragonfly defended its investment in Tornado Cash, seeking legal counsel beforehand to ensure compliance.

In 2022, the US Treasury Department sanctioned Tornado Cash for money laundering and national security threats. The sanctions were overturned this year after Tornado Cash users filed a civil action against OFAC. The DOJ has not provided confirmation on Dragonfly investigation.

Tornado Cash developers Roman Storm and Roman Semenov were charged with money laundering and sanctions violations. Storm’s trial began in July, with soaring legal fees prompting an urgent appeal for $1.5 million. Storm has already raised over $3.9 million from the crypto community to cover costs.

Read more at Cointelegraph: DOJ Confirms Dragonfly Not Under Investigation Over Tornado Cash Ties