1 day ago
Dragonfly managing spouse Haseeb Qureshi revealed that the U.S. Department of Justice (DOJ) volition not bring transgression charges against the crypto task firm, arsenic Tornado Cash co‑founder Roman Storm’s national proceedings successful Manhattan neared its conclusion.
Qureshi, whose concern steadfast backed respective blockchain startups, wrote connected societal media that national authoritative Nathan Rehn told the tribunal July 28 that neither Dragonfly nor its principals were targets of the department’s investigation.
He called the nationalist clarification “unprecedented” and “a wide usurpation of DOJ policy,” citing the Justice Department’s accustomed signifier of keeping people accusation confidential. The improvement comes days aft Qureshi publicly denounced the DOJ implicit targeting the steadfast for backing Tornado Cash successful 2020 arsenic portion of Storm’s trial.
Storm, who co‑founded Tornado Cash successful 2019 arsenic an open‑source protocol to anonymize cryptocurrency transactions, is charged with laundering much than $1 billion and violating U.S. sanctions against North Korea’s Lazarus Group.
The trial, which began July 14 successful U.S. District Court successful Manhattan, has heard testimony from blockchain tracing experts and erstwhile Tornado Cash users. Closing arguments are expected aboriginal this week.
Tornado Cash was added to the U.S. Treasury Department’s sanctions database successful August 2022, marking the archetypal clip a bundle protocol faced specified action. Prosecutors allege Storm personally approved transactions for illicit actors, portion defence attorneys reason that the protocol’s code, not its creator, should beryllium judged.
Dragonfly invested successful Tornado Cash successful 2020 aft obtaining an extracurricular ineligible sentiment that the mixer complied with U.S. anti‑money‑laundering guidance issued by the Financial Crimes Enforcement Network (FinCEN).
The result of Storm’s lawsuit could reshape however open‑source developers are held accountable for idiosyncratic activity. If convicted, Storm faces up to 45 years successful prison, a condemnation that critics pass could chill innovation successful privacy‑enhancing tools.
Qureshi wrote:
“With that down us, the absorption should stay connected Roman Storm’s trial, which is present nearing closing arguments arsenic soon arsenic this week. Its result volition person monolithic implications for open-source bundle and privateness rights successful America.”
The station DOJ clarifies Dragonfly is not a people arsenic Tornado Cash co-founder proceedings nears conclusion appeared archetypal connected CryptoSlate.
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