Dragonfly Capital’s early investment in Tornado Cash could expose the firm to potential legal action from the DOJ.
Dragonfly Capital could be the target of federal charges stemming from its early investment in Tornado Cash developer PepperSec, Inc., but the venture firm says it is prepared to “vigorously defend” itself if prosecutors pursue the case.
In a Friday social media post, Dragonfly Capital managing partner Haseeb Qureshi defended the firm’s early backing of Tornado Cash — an open-source protocol that allows users to obscure blockchain transactions — dating back to August 2020.
“We made this investment because we believe in the importance of open-source privacy-preserving technology,” said Qureshi, adding that the company had consulted outside legal counsel before investing and was assured Tornado Cash was compliant.
