The US Department of Justice has clarified that crypto venture firm Dragonfly Capital is not under investigation and will not face charges over its past investments in Tornado Cash, a non-custodial crypto mixer. The update came during a Monday court session, reversing earlier remarks that sparked concern across the crypto and tech industry.
Tornado Cash developers Roman Storm and Roman Semenov have been charged for money laundering through the tool since 2023. As Strom’s court trial started a couple of weeks ago, there have been claims that the DOJ is also contemplating charges against Dragonfly for having invested into the Tornado Cash team in 2020.
Haseeb, a managing partner at Dragonfly, made a public comment explaining their investment in PepperSec and how it has nothing to do with the case of Tornado Cash. He described the earlier claim as a serious error and a clear breach of Justice Department policy.
In his X post, Haseeb cleared the air that prosecutors confirmed on record that the firm and its partners are not targets of any criminal probe.
The situation drew sharp reactions, as many warned that such statements could scare investors away from supporting blockchain innovation. Dragonfly said the real focus should now return to Roman Storm’s trial, which is ongoing and could end with closing arguments this week. The outcome of that case is expected to set a major precedent for open-source developers and privacy tools in the United States.
Samourai Co-Founders Reverse Course
In a separate case, the two co-founders of Samourai Wallet are preparing to plead guilty to criminal charges related to their role in a crypto mixing protocol. Court records filed on Tuesday show that Keonne Rodriguez and William Lonergan Hill intend to change their original pleas from not guilty to guilty.
The pair were arrested in April 2025 and charged with conspiracy to launder money and operating an unlicensed money-transmitting business. Authorities allege that Samourai Wallet handled more than $2 billion in unlawful transactions, including some linked to dark web marketplaces.
A hearing is set for Wednesday morning, where the court will review the updated pleas. Both men could face up to 25 years in prison if convicted.
Earlier this year, the defendants attempted to have the case dismissed, pointing to internal guidance suggesting they may not have needed a licence. However, the court rejected those arguments.
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