Table of Contents
Dragonfly capital can be in severe trouble. A federal prosecutor told a New York court that the Justice Department was making criminal charges against one of the general partners of the firm regarding its investment in the tornado. This is a stunning twist in testing of tornado cash developer Roman Storm And wakes up A big question: Can investors be legally attributed to what they do portfolio projects?
Legal spotlight shines on Tom Schmidt
Tom Schmidt, a partner of Dragonfly, mentioned Hesfel in the court when the Processor noted that the charge against him On the table, That comment was quickly sealed From records, but the message was clear. For now, that’s not ChargedBut he is a scanner. This type of atribution on a VC investor is rare, in eight when both of them are involved in day-to-day operations.
Dragonfly surface email in court
DOJ is carrying this angle one reason can now be internal email in evidence. The 2020 message shows the dragonfali, provoking things like KYC, discussing perfection with tornado cash developers. He can cut. On one hand, it shows that the dragonfali was aware of regulator concerns. On the other hand, it Can be used To argue They Knowing the risks and proceeded anyway. Schmid, for his share, refused TTFY, called for the fifth annandment.
Dragonfly isn’k banking down
Hasib Qureshi, another managing partner of the dragonfali, has already responded publicly. He called the idea of criminal allegations against an investor absurd. Kaside for him, dragonfali first got legal advice InvestmentDid not run the computer, and certainly left the account launder money. He too Stressed on Firm’s commitment to privacy Technology And Interest He has been cooled with officials since last year.
Discover: Best New Cryptocurrency to invest in 2025
If a VC can Be readyWhat next?
it Crypto can set a new bar for legal risk in space. An enterprise for capitalist charge To invest in Latter Scare Other investor Dislike, Privacy technology is already hesitant around, but it can take it further. Investors can start getting any controversial, even if the technique is neutral.
Discover: 20+ next crypto to explode in 2025
Schmid Silent, Defense Hits
The defense team loses a significant harassment to explain the dragonfly of the story, with Schmid refusing to delicious. His testimony sofa has helped to show the store that the devilopers were working with the partners who talk seriously on the complaint. But since the government did not give immunity, Schmid kept quiet. This decision can affect how the rest of the case comes up.
Big photo for Crypto and Deffi
The Roman Storm and his co-tolerance are facing allegations related to money laundering and are connected to the approved groups, which include North Korea’s Lazarus Group. Are regulator Clearly To leave the net. It is no longer about developers. Now, Backers and investors can be Dragged In court Too,
Is this another phase where this organization will start going after crypto companies? This is not meaningful for DOJ to function in this way. It’s bitter nonsense
I hope you guys will win and come out how the consensus has done.
Stay strong.
– Danny (@he3is_) 25 July, 2025
Example or warning shot?
So far, Schmidt Hasn Investment Charged, But If the doj goes AheadIt can set a one Chief Example. If not, it still sends an indication that a closed in crypto. Inventors may need to think twice what they do Fund And how closely they are. This case is no longer about tornado cash. This is about where the government pulls the line.
discover: 20+ next Crypto to explode in 2025
Join 99bitCoins News Discord here for latest market updates
key takeaways
-
Doj is considering criminal allegations that the Deconst Decoonst Dragonfly Partner Tom Schmit on the investment of the firm in the tornado cat.
-
The 2020 internal email showed Dragonfly with tornado cash developers while discussing KYC and complaint facilities.
-
Schmid called for the fifth annandment and refused to testify, limited
-
Dragonfly managing partner Haseeb Qureshi called the idea of charging VC absurd and said he followed legal guidance.
-
The matter can be set up a new example, in which investors are facing legal exposures for action of crypto projects.
The Post Dragonfly Investor can be a DOJ charge on Tornado Cash Bet.
