The post Roman Storm Trial Turns Critical as DOJ Denies Investigating Dragonfly appeared first on Coinpedia Fintech News
The U.S. Department of Justice has confirmed that Dragonfly Ventures is not under investigation for its past investment in Tornado Cash. This update comes just as Roman Storm’s high-profile crypto trial moves toward its conclusion in New York.
Here’s everything you need to know.
DOJ Steps Back from Dragonfly Allegations
In a post on X, Qureshi said the DOJ clarified during a trial on Monday that media reports suggesting otherwise were inaccurate. He added, “The DOJ has now backtracked… Neither Dragonfly nor any of its principals are targets in their investigation.”
Qureshi also posted excerpts from the trial transcript where prosecutors admitted the reports about Dragonfly being under investigation were wrong and misleading.
Qureshi Slams DOJ Over Court Comments
Qureshi criticized the DOJ’s initial comments in open court last Friday, calling them “unprecedented and against policy”.
“They are never allowed to speculate on prosecuting a third party in open court in front of the media,” he said.
He suggested the DOJ’s move may have been intended to discourage Dragonfly from testifying for the defense. Qureshi also warned that even hinting at charges could discourage investment in blockchain and privacy-related technologies.
Attention Shifts Back to Roman Storm
Now that the DOJ has clarified its position, Qureshi urged the public to focus on Roman Storm’s trial. Closing arguments could come as early as this week.
He emphasized that the outcome of the case could have far-reaching implications for open-source developers and privacy rights in the United States.
Prosecutors had previously suggested they might pursue charges against Dragonfly for its 2020 investment in PepperSec, the company that developed Tornado Cash. Qureshi defended the investment, saying it was meant to support open-source privacy technology, and that Dragonfly had obtained legal advice confirming the move was compliant at the time.
Was Tornado Cash a Tool or a Threat?
Roman Storm, co-founder of Tornado Cash, is on trial for money laundering and sanctions violations. His legal team confirmed on Tuesday that he has chosen not to testify
The defense argued Storm helped build a privacy tool, not a money laundering operation. They claimed the protocol was immutable and that Storm couldn’t stop bad actors from abusing it.
The defense also called expert Dr. Matthew Green, who explained that crypto needs privacy and Tornado Cash helps protect users from scams and threats. It’s now up to the jury to decide if Tornado Cash was just a tool or a shield for criminals.
The trial continues. Storm has issued an urgent appeal for an additional $1.5 million to help cover rising legal expenses. We’ll keep you updated on what happens next.