Dragonfly Capital may be the target of federal charges resulting from early investment in the developer Tornado Cash Peppersec, Inc., but Venture claims that it is prepared for “energetic defense” if prosecutors are doing the case.
On Friday, social media postDragonfly Capital Managing Partner Haseb Qresh defended the early support of the Tornado Cash-Protocol like Open Source, which allows users to darken Blockchain-Blockchain transactions from August 2020.
“We did this investment because we believe in the importance of technology that causes the privacy of Open Source,” said Qreshhi, adding that the company consulted with an external legal advisor before investing and it was assured that Tornado Cash was consistent.
Despite this legal opinion, developers Tornado Cash Roman Storm and Roman Semenov were accused With money laundering and violations of sanctions by the American prosecutor’s office for the southern district of Modern York in August 2023.
The Storm criminal trial in Modern York is underway, where it faces federal allegations, which may result in more than 40 years in prison.
On Friday, prosecutors pointed out that they could implement Dragonfly’s allegations for investments in Cash Tornado five years ago.
“We believe that the government’s statement in court was primarily to undermine the defense of Tornado cash,” said Qreshhi, adding that lodging charges after all this time would be “outrageous”.
“We do not believe that the statement will actually bring such absurd and unfounded allegations. But if so, we intend to defend ourselves vigorously,” he added.
Related: The developer Ethereum Core testifies Roman Storm in defense when the government is resting
Devs say Tornado Cash was a privacy tool, but prosecutors don’t buy it
Developers Tornado Cash described the platform as decentralized, unrelated to protect the privacy tool, which enabled users to send and receive digital assets without revealing the history of the portfolio.
Often called the “mixer”, he collected cryptocurrencies from many users before their redistribution, effectively breaking the direct relationship between sending and receiving addresses.
In 2022, the Foreign Asset Office of the Department of the US Treasury (OFAC) sanctioned Tornado Cash, claiming that it made it easier to laundering money from many billion dollars, supported cybercrime and pose a threat to national security. The tool was also accused of obscuring illegal transactions.
Despite the sanctions and. Criminal investigation, Tornado Cash recorded the revival in 2024. Flipside Crypto showed $ 1.9 billion in deposit during the first six months of this year.
https://www.youtube.com/watch?v=realmh3vwwg
Related: The judge allows testimonies about the “feasible” changes in the Tornado Cash Code
