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DOJ Threatens Dragonfly Capital with Criminal Charges Over Historic Tornado Cash Ties
DOJ Threatens Dragonfly Capital with Criminal Charges Over Historic Tornado Cash Ties
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U.S. prosecutors are circling Dragonfly Capital—and the crypto VC's past investments in privacy tool Tornado Cash could spell legal trouble.
The Backstory: Years after Dragonfly backed the controversial Ethereum mixer, the DOJ dusts off its regulatory hammer. No charges filed yet—but the message is clear: old crypto deals aren't buried deep enough.
Why It Matters: This isn't just about one firm. It's a shot across the bow for any VC that ever flirted with privacy tech before regulators decided it was 'money laundering adjacent.'
The Irony: Meanwhile, traditional banks move trillions in suspicious funds annually—but sure, let's chase a 3-year-old crypto investment. Priorities, right?
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