Dragonfly Cleared. Roman Storm’s Fate Still Hangs in the Balance.

DOJ says Dragonfly’s off the hook. But Tornado Cash’s co-founder could still get 45 years. The trial that could redefine open-source just hit its final stretch.

🧠 Quick Take

• 🔓 DOJ confirms: Dragonfly Capital and its leaders are not targets in the Tornado Cash case
• 🧑‍⚖️ Roman Storm, co-founder of Tornado Cash, on trial in Manhattan — charges include money laundering & sanctions violations
• 🌪️ Protocol allegedly helped launder over 1B, including funds tied to North Korea’s Lazarus Group
• 🧑‍💻 Defense says: Don’t jail the dev — blame the code
• ⚖️ Closing arguments: this week
• 🛠️ Case could reshape the legal future of privacy tech and open-source software

The DOJ Just Spoke — and It Broke Tradition

In a rare public statement, the Department of Justice clarified that Dragonfly Capital and its managing partner Haseeb Qureshi are not under investigation in connection with the Tornado Cash saga.

This is not how the DOJ usually plays it. They almost never confirm or deny targets during ongoing cases — but this time, they did. Prosecutor Nathan Rehn made the statement on record in Manhattan court July 28.

Qureshi, who had previously slammed the DOJ for dragging Dragonfly into the storm (pun intended), called the clarification “unprecedented.”

Tornado Cash Trial: A Legal Hurricane

At the center of this drama is Roman Storm, the U.S.-based co-founder of Tornado Cash, the infamous privacy mixer. He’s currently on trial for:

• 🧼 Allegedly laundering over 1 billion
• 💣 Violating U.S. sanctions tied to North Korea’s Lazarus Group
• 🧑‍💻 Operating a tool used by bad actors, knowingly or not

The DOJ argues that Storm wasn't just some passive coder — they say he personally authorized illicit transactions. The defense? Code is speech. He built it, but didn’t run it.

The trial began July 14, with blockchain forensics experts and Tornado users taking the stand. Closing arguments are expected this week.

Why This Case Changes Everything for Devs

Tornado Cash was sanctioned by the U.S. Treasury in August 2022, marking the first time an open-source protocol was added to the sanctions list.

Since then, the crypto world’s been asking:

Can you jail a developer for what people do with their code?

Dragonfly’s early investment in Tornado Cash was backed by a legal opinion stating the protocol followed FinCEN’s AML guidelines. But that hasn’t stopped the federal heat — especially for those who actually built the thing.

If Storm is convicted, he could face up to 45 years behind bars. That would send shockwaves through privacy tech, DeFi, and open-source communities alike.

What Haseeb Qureshi Thinks

Now that Dragonfly’s been cleared, Qureshi wants the spotlight back where it belongs:

“With that behind us, the focus should remain on Roman Storm’s trial… Its outcome will have massive implications for open-source software and privacy rights in America.”

He’s not wrong. What’s being decided in this Manhattan courtroom isn’t just one man’s freedom — it’s the future of anonymous crypto.

TL;DR

• DOJ confirms: Dragonfly Capital isn’t being charged
• Roman Storm’s Tornado Cash trial nears its end
• Case centers on 1B+ laundered through the privacy protocol
• Big question: Should open-source devs be held liable for how their code is used?
• Outcome could define the legal boundaries of privacy, code, and crypto innovation in the U.S.