The US Division of Justice just isn’t investigating Dragonfly Ventures or its executives over the enterprise agency’s previous funding in Twister Money, in response to Haseeb Qureshi, Dragonfly’s co-founder and managing associate.
The DOJ reportedly revealed throughout a Monday trial that it isn’t concentrating on Dragonfly in its investigation, Qureshi stated in a Tuesday publish on X. “The DOJ has now backtracked,” he wrote, including:
“They’ve said on the report within the trial Monday morning that the media studies that they had been planning to convey expenses towards Dragonfly had been inaccurate, and neither Dragonfly nor any of its principals are targets of their investigation.”
Qureshi additionally shared transcripts of the trial, the place prosecutors stated there “has been inaccurate and deceptive public reporting on the federal government’s place regarding Dragonfly and sure of its executives.”
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DOJ hints at Dragonfly probe in Twister Money case
On Friday, DOJ prosecutors urged the company might pursue charges against Dragonfly for its 2020 funding in Twister Money developer PepperSec, Inc.
In a subsequent publish on X, Qureshi referred to as the suggestion “unprecedented” and a violation of DOJ coverage, arguing that speculating on third-party prosecution in public was meant to stop Dragonfly from testifying for the protection.
Qureshi additionally defended Dragonfly’s early backing of Twister Money. “We made this funding as a result of we imagine within the significance of open-source privacy-preserving expertise.” He added that Dragonfly had sought exterior authorized counsel earlier than investing and was assured that Twister Money was compliant.
In 2022, the US Treasury Division’s Workplace of Overseas Belongings Management (OFAC) sanctioned Tornado Cash, alleging it facilitated multibillion-dollar cash laundering, supported cybercrime and posed a risk to nationwide safety.
These sanctions were overturned earlier this 12 months after Twister Money customers filed a civil motion towards OFAC.
Cointelegraph was unable to contact the DOJ for affirmation.
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Twister Money builders charged
Twister Money builders Roman Storm and Roman Semenov had been indicted on expenses of cash laundering and sanctions violations in August 2023. Storm’s trial started on July 14 in New York.
On Saturday, Storm issued an urgent appeal for an extra $1.5 million to cowl hovering authorized charges as his high-profile crypto trial enters its third week. Storm, who has already raised over $3.9 million from the crypto neighborhood, says the prices are mounting rapidly.
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