DOJ Will Not Charge Dragonfly in Tornado Cash Case, Managing Partner Confirms

The U.S. Department of Justice (DOJ) will reportedly not bring criminal charges against crypto venture firm Dragonfly, according to managing partner Haseeb Qureshi. This announcement comes as Tornado Cash co-founder Roman Storm nears the conclusion of his federal trial in Manhattan.

DOJ Walks Back Dragonfly Indictment as Roman Storm Trial Nears Conclusion

On July 28, Qureshi revealed that the DOJ will not indict Dragonfly on criminal charges related to its connections with the controversial crypto mixer Tornado Cash.

Since our statement on Friday, we've received overwhelming support from across the crypto, tech, and venture communities. We want to sincerely thank you all for standing behind us.

The DOJ has now backtracked. They have stated on the record in the trial Monday morning that the… pic.twitter.com/9vSrJseTMx

— Haseeb ＞|＜ (@hosseeb) July 29, 2025

Qureshi shared a screenshot of court testimony from federal prosecutor Nathan Rehn and criticized the DOJ’s public statements on Friday as “unprecedented” and “a clear violation of DOJ policy.” He stated, "The DOJ has now backtracked. 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." Qureshi also expressed public support for Roman Storm as his landmark trial approaches closing arguments in the Manhattan federal courthouse.

With that behind us, the focus should remain on Roman Storm’s trial, which is now nearing closing arguments as soon as this week. Its outcome will have massive implications for open-source software and privacy rights in America.

We are hopeful that the American judicial system will get this right.

Background on Roman Storm’s Trial

Roman Storm faces money laundering and sanctions violation charges related to Tornado Cash. Prosecutors allege that Storm laundered and concealed over $1 billion through the crypto mixer, including hundreds of millions linked to the Lazarus Group, North Korea’s state-sponsored hacking organization. If convicted, Storm could face up to 45 years in federal prison.

Frequently Asked Questions (FAQ)

Tornado Cash Case and Dragonfly

Q: Will Dragonfly face criminal charges from the DOJ in relation to Tornado Cash? A: According to Dragonfly's managing partner, Haseeb Qureshi, the DOJ has stated on record that Dragonfly and its principals are not targets in their investigation and that previous media reports about impending charges were inaccurate. Q: What are the charges against Roman Storm, co-founder of Tornado Cash? A: Roman Storm faces charges of money laundering and sanctions violations, with prosecutors alleging he laundered over $1 billion through Tornado Cash, including funds linked to North Korea's Lazarus Group. Q: What is the potential penalty for Roman Storm if convicted? A: If convicted, Roman Storm could face up to 45 years in federal prison. Q: Why is Roman Storm's trial considered a landmark case? A: The outcome of Roman Storm's trial is expected to have significant implications for open-source software development and privacy rights in the United States.

Crypto Market AI's Take

This development highlights the evolving legal landscape surrounding decentralized finance tools and their intermediaries. As regulatory scrutiny continues, understanding the legal implications of working with such protocols is crucial for venture firms and developers alike. Our platform offers insights into the broader regulatory environment affecting the crypto space, including government and regulatory news, and provides tools to help navigate these complexities.

Dragonfly Won't Face Criminal Charges, Managing Partner Says