Dragonfly Capital may very well be the goal of federal expenses stemming from its early funding in Twister Money developer PepperSec, Inc., however the enterprise agency says it’s ready to “vigorously defend” itself if prosecutors pursue the case.
In a Friday social media submit, Dragonfly Capital managing accomplice Haseeb Qureshi defended the agency’s early backing of Twister Money — an open-source protocol that enables customers to obscure blockchain transactions — courting again to August 2020.
“We made this funding as a result of we imagine within the significance of open-source privacy-preserving expertise,” stated Qureshi, including that the corporate had consulted exterior authorized counsel earlier than investing and was assured Twister Money was compliant.
Regardless of this authorized opinion, Twister Money builders Roman Storm and Roman Semenov had been charged with cash laundering and sanctions violations by the US Lawyer’s Workplace for the Southern District of New York in August 2023.
Storm’s prison trial is underway in New York, the place he faces federal expenses that might lead to greater than 40 years in jail.
On Friday, prosecutors indicated they might pursue expenses towards Dragonfly for its funding within the Twister Money staff 5 years in the past.
“We imagine the federal government’s assertion in court docket at the moment was primarily to undermine a protection of Twister Money,” Qureshi stated, including that bringing expenses in any case this time can be “outrageous.”
“We don’t imagine the DOJ would truly convey such absurd and groundless expenses. But when they do, we intend to vigorously defend ourselves,” he added.
Associated: Ethereum core developer testifies in Roman Storm protection as gov’t rests case
Devs declare Twister Money was a privateness device, however prosecutors don’t purchase it
Twister Money’s builders described the platform as a decentralized, non-custodial privateness device that enabled customers to ship and obtain digital property with out revealing their pockets historical past.
Also known as a “mixer,” it pooled cryptocurrencies from a number of customers earlier than redistributing them, successfully breaking the direct hyperlink between sending and receiving addresses.
In 2022, the US Treasury Division’s Workplace of Overseas Belongings Management (OFAC) sanctioned Twister Money, alleging it facilitated multibillion-dollar cash laundering, supported cybercrime and posed a menace to nationwide safety. The device was additionally accused of obfuscating illicit transactions.
Regardless of sanctions and. prison investigations, Twister Money noticed a resurgence in 2024. Information from Flipside Crypto confirmed $1.9 billion in deposits in the course of the first six months of that yr.
Associated: Choose permits testimony on ‘possible’ Twister Money code modifications
