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Dragonfly Investors Remain Potential DOJ Targets in Tornado Cash Case

Prosecutors testified they have yet to rule out charges against the firm's investing partners.
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Jul 25, 20251 min read

Dragonfly Capital, an early investor in Tornado Cash, is contesting Department of Justice charges against Tornado Cash’s co-founders — all while prosecutors insist that they haven't ruled out charges against the crypto venture firm's investors.

What’s the Scoop?

  • DOJ Case Against Roman Storm: Roman Storm’s trial began July 14 in Manhattan on charges of conspiracy to commit money laundering and sanctions violations; one count related to money transmission was dropped.
  • Dragonfly’s Data Questioned: The defense moved to exclude Telegram messages from Dragonfly, arguing they were hearsay or lacked context.
  • Court Rejects Exclusion: Judge Failla ruled the messages admissible, citing case law on business records used as evidence. The firm says it complied with sanctions guidance in 2020 and disputes prosecutors’ interpretation of internal chats.

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