DOJ Clarifies Dragonfly Not Under Investigation Amid Roman Storm Trial

The U.S. Department of Justice has explicitly denied investigating Dragonfly Ventures for its historical ties to Tornado Cash. This clarification emerged during the pivotal stages of Roman Storm's crypto-related trial in New York, countering earlier media speculation.

Defense attorney Qureshi highlighted the DOJ's courtroom admission that reports implicating Dragonfly were inaccurate. Prosecutors acknowledged the error in trial transcripts, marking a rare retreat from public misstatements. "Neither Dragonfly nor its principals are targets," the DOJ confirmed.

Qureshi condemned the initial court remarks as a breach of protocol, emphasizing prosecutors should never speculate about third-party prosecutions in open proceedings. The crypto community rallied behind Dragonfly following the retraction, underscoring tensions between regulatory transparency and due process.