Investment & Legal Stance - Dragonfly invested in PepperSec, Inc (Tornado Cash developers) in August 2020, based on the belief in open-source privacy-preserving technology [1] - Prior to the investment, Dragonfly obtained a legal opinion confirming Tornado Cash complied with the law under FinCEN's 2019 guidance [1] - The government is contemplating charges against Dragonfly for the 2020 investment in Tornado Cash [2] - Dragonfly believes in Americans' right to privacy and stands by its investment, asserting it did not operate or control Tornado Cash, had no contact with malicious users, and encouraged legal compliance [3] - Dragonfly maintains Tornado Cash has a lawful right to exist, supported by Van Loon v Department of the Treasury [3] Cooperation & Investigation - In 2023, Dragonfly received a DOJ subpoena and fully cooperated with the government's investigation of Tornado Cash [4] - The DOJ has indicated that Dragonfly is not a target of their investigation [4] Potential Implications & Defense - Dragonfly believes the government's statement aims to undermine Tornado Cash's defense [5] - Charging a venture firm for a portfolio company's alleged misconduct would be unprecedented and induce a chilling effect on crypto and privacy-preserving technology investment in America [3][5] - Dragonfly intends to vigorously defend itself if the DOJ brings charges [6]
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Ivan on Tech 🍳📈💰·2025-07-26 16:15