The capital of the dragonfly could be the target of the federal accusations arising from his early investment in the Treasury Developer of Tornado Peppersec, Inc., but the venture capital company says that it is ready to “defend itself vigorously” if the prosecutors continue the case.
In an article on Friday on social networks, the Dragonfly Capital director, Haseeb Qureshi, defended the early support of the Tornado Cash by the company – an open source protocol which allows users to obscure blockchain transactions – dating from August 2020.
“We have made this investment because we believe in the importance of open -source confidentiality preservation technology,” said Qureshi, adding that the company had consulted an external legal advisor before investing and was assured that Tornado Cash was in line.
Despite this legal opinion, the developers of Tornado Cash Roman Storm and Roman Semenov were accused of money laundering and sanctions the violations of the American prosecutor’s office for the South New York district in August 2023.
Storm’s criminal trial is underway in New York, where he risks federal accusations that could lead to more than 40 years in prison.
Prosecutors said on Friday that they could exercise accusations against Dragonfly for his investment in the Tornado Cash team five years ago.
“We believe that the statement of the government in court today was mainly to undermine a defense of tornado money,” said Qureshi, adding that carrying charges after all this time would be “scandalous”.
“We do not think that the Doj would really bring such absurd and baseless accusations. But if they do, we intend to defend ourselves vigorously,” he added.
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The developers claim that the tornado is a confidentiality tool, but the prosecutors do not buy it
The developers of Tornado Cash described the platform as a tool for decentralized and non-guardian confidentiality which allowed users to send and receive digital assets without revealing the history of their portfolio.
Often called “mixer”, he brought together cryptocurrencies from several users before redistributing them, effectively break the direct link between sending and receiving addresses.
In 2022, the Foreign Treasury Treasury Bureau (OFAC) sanctioned the torade in cash, alleging that it facilitated money laundering of several billion dollars, argued cybercrime and represented a threat to national security. The tool was also accused of obscuring illicit transactions.
Despite the sanctions and. Criminal surveys, Tornado Cash experienced an resurgence in 2024. Crypto flip -on data showed $ 1.9 billion in deposits in the first six months of this year.
https://www.youtube.com/watch?v=REALMH3VWWG
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