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Dragonfly partners respond to potential allegations from the Department of Justice: they plan to defend themselves fully

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2025-07-25 16:57:36
Dragonfly partner Haseeb responded that "the Department of Justice is considering charges against DragonFly employees in connection with the Tornado Cash case." Dragonfly invested in PepperSec, Inc., the developer of Tornado Cash, in August 2020. The investment was made because of a strong belief in the importance of open-source privacy-preserving technology. Prior to the investment, Dragonfly had obtained external legal advice confirming that Tornado Cash was constructed in accordance with the law and in accordance with guidelines issued in 2019 by FinCEN, a subsidiary of the US Treasury. The US government has now said in open court that they are considering bringing charges against Dragonfly. On the advice of our lawyers, we have not commented publicly for the time being, but have decided not to remain silent. "
"We firmly believe that Americans have a right to privacy, and the lack of that right remains one of the biggest unanswered questions in the cryptocurrency space. That's why we stand by our investment stance. Charging Dragonfly after years is outrageous, contrary to facts and the law, and will have a chilling effect on all U.S. investments in crypto and privacy-preserving technology. Dragonfly intends to defend itself in full force."
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