TechFlow, July 26 — Dragonfly partner Haseeb responded to reports that the U.S. Department of Justice is considering charges against Dragonfly employees in the Tornado Cash case: "Dragonfly invested in PepperSec, Inc., the developer of Tornado Cash, in August 2020, based on a strong belief in the importance of open-source privacy-enhancing technologies. Prior to the investment, Dragonfly obtained external legal counsel confirming that Tornado Cash's development complied with applicable laws and aligned with guidance issued in 2019 by FinCEN, a bureau within the U.S. Department of the Treasury. The U.S. government has now stated publicly in court that it is considering bringing charges against Dragonfly. While we have refrained from public comment based on our attorneys’ advice, we have decided it is no longer appropriate to remain silent.
We firmly believe Americans have a right to privacy, and the lack of privacy remains one of the greatest unsolved challenges in cryptocurrency. That is why we stand by our investment decision. Bringing charges against Dragonfly years later is outrageous, factually and legally unfounded, and will have a chilling effect on all investment in encryption and privacy-enhancing technologies in the United States. Dragonfly intends to defend itself vigorously."
