DOJ backtracks on pursuing charges against Dragonfly for early Tornado Cash investment, exec says

The Department of Justice has backtracked on its previous statement that it would consider charges against Dragonfly for the firm's early support of crypto mixer Tornado Cash, according to a Dragonfly executive.Haseeb Qureshi, co-founder of Dragonfly Ventures, said Tuesday in a post on X that the DOJ stated on record in a Monday trial that it would no longer target Dragonfly in its investigation."The DOJ has now backtracked," Qureshi wrote. "They have stated on the record in the trial Monday morning that the media reports that they were planning to bring charges against Dragonfly were inaccurate, and neither Dragonfly nor any of its principals are targets in their investigation."On Friday, the DOJ said it was considering charges against the venture firm for having invested in the Tornado Cash team in 2020, according to Qureshi's earlier X post.Qureshi said Tuesday that the DOJ's Friday statement in court was "not only unprecedented" but a "clear violation of DOJ policy.""They are never allowed to speculate on prosecuting a third party in open court in front of the media," Qureshi added. This development occurs amid ongoing litigation against Roman Storm, a Tornado Cash co-founder, who faces conspiracy and sanctions violation charges related to the crypto mixer designed to obscure transaction origins.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.