DOJ Clears Dragonfly Capital in Tornado Cash Probe, Samourai Wallet Founders Plead Guilty

The U.S. Department of Justice has formally cleared crypto venture firm Dragonfly Capital of any investigation or charges related to its 2020 investment in Tornado Cash, a non-custodial cryptocurrency mixer. Prosecutors confirmed in court that neither Dragonfly nor its partners are targets of criminal probes, reversing earlier remarks that had unsettled the crypto industry.

The clarification follows mounting scrutiny over Tornado Cash developers Roman Storm and Roman Semenov, who face money laundering charges for their role in operating the privacy tool. Storm's trial, now entering its final stages, has become a focal point for debates over developer liability in decentralized finance.

Dragonfly managing partner Haseeb publicly refuted claims linking the firm to Tornado Cash's alleged misconduct, calling initial suggestions of potential charges "a serious error" that violated DOJ policy. The episode sparked concerns about chilling effects on venture investment in blockchain infrastructure projects.