The post DOJ Considers Charges Against Dragonfly Executives in Tornado Cash Case appeared on BitcoinEthereumNews.com.

DOJ eyes criminal charges against Dragonfly leaders over Tornado Cash links. Emails show Schmidt, Qureshi debated adding KYC to Tornado Cash. Tornado Cash helped launder $900K for North Korean cyber attackers. The United States Department of Justice (DOJ) is actively considering criminal charges against executives at the crypto venture capital firm Dragonfly. The investigation is connected to the controversial cryptocurrency mixer Tornado Cash. The DOJ is especially interested in Tom Schmidt, a general partner at Dragonfly, and other unnamed people related to the firm. DOJ Links Tornado Cash to $900K Laundered by North Korean Hackers The news was revealed at a recent court hearing, where Assistant U.S. Attorney Rehn revealed that Schmidt and others are targets of investigation. The journalist Eleanor Terrett later posted this revelation on social media. The prosecutor made a statement and then requested that the transcripts not be shared with the public. He wanted to keep the details private. This request showed how sensitive the ongoing inquiry was. According to the trial process, prosecutors introduced email messages between Roman Storm, one of the Tornado Cash founders, and Dragonfly leaders such as Schmidt and Haseeb Qureshi. According to the emails, they argued whether to include Know Your Customer (KYC) capabilities into the Tornado Cash system. As per the court records, Tornado Cash had once considered measures to become compliant with regulations. These initiatives, however, never came to pass. In August 2022, the U.S. Treasury sanctioned Tornado Cash, a decentralized program to obscure crypto transactions. The government states that it has been used to launder money associated with cybercrime, like that of North Korean state-sponsored hackers. Only last week, the DOJ indicted four North Korean nationals for using the same platform to transfer about $900,000 in cryptocurrency. As a result, they were exposed for posing as remote IT…

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Filed under: News - @ July 27, 2025 1:26 am