Overview

• The Justice Department informed a Manhattan court on July 28 that neither Dragonfly Capital nor its executives are targets in the Tornado Cash probe
• Prosecutors had earlier suggested they were considering charges against Dragonfly principals, prompting defense objections over breaks in DOJ policy
• Co-founder Roman Storm faces allegations of laundering over $1 billion and violating U.S. sanctions through the Ethereum-based mixer
• Witnesses from Dragonfly and Chainalysis invoked Fifth Amendment rights after prosecutors contacted them about their links to Tornado Cash
• Legal experts warn that the trial’s outcome could redefine accountability for open-source privacy tools and influence future blockchain investments