The post DOJ weighs Dragonfly’s role in Tornado Cash co-founder Roman Storm trial appeared on BitcoinEthereumNews.com.

The U.S. Department of Justice is weighing potential charges against Dragonfly Capital leaders following the current legal actions against Tornado Cash co-founder Roman Storm. According to journalist Eleanor Terrett in a post on X, Storm’s defense had requested General Partner Tom Schmidt to testify on communications touching on Tornado Cash Know Your Customer (KYC) considerations. He refused to testify, pleading the Fifth Amendment. “The defense had wanted Schmidt to testify, but he invoked the Fifth through his lawyer. It’s unclear whether he’ll be granted immunity (something the defense had reportedly been advocating for), or whether he’d testify if that happens.” Eleanor Trent His testimony might shed light on in-house deliberations of regulatory compliance, such as a 2020 email correspondence between Storm and his team asking for input on incorporating KYC features. Prosecutors have yet to confirm whether Schmidt will be offered immunity or whether he will be allowed to give evidence next week. Failure to testify may undermine Storms’ push to demonstrate that Tornado Cash thought about involving the regulator on matters relating to regulatory compliance prior to sanctions. Storm is accused of conspiracy to commit money laundering, operating an unregistered money transmitter, and breaching the U.S. sanctions. The DOJ has claimed that Tornado Cash has enabled billions in illegal transfers, such as those involving the North Korean Lazarus Group. Although the U.S. government has reached an agreement to withdraw criminal charges related to civil sanctions against the crypto mixer, the criminal case has not been closed. Dragonfly’s Haseeb responds to subpoena, criticism Dragonfly Managing Partner Haseeb Qureshi issued a public response on X following the DOJ’s suggestion of potential charges. He affirmed that the company had invested in Tornado Cash according to a legal opinion stating that it is not in violation of the current rules. Dragonfly invested into…

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Filed under: News - @ July 25, 2025 10:36 pm