The US Division of Justice is just not investigating Dragonfly Ventures or its executives over the enterprise agency’s previous funding in Twister Money, in accordance with Haseeb Qureshi, Dragonfly’s co-founder and managing accomplice.
The DOJ reportedly revealed throughout a Monday trial that it’s not focusing on Dragonfly in its investigation, Qureshi mentioned in a Tuesday submit on X. “The DOJ has now backtracked,” he wrote, including:
“They’ve acknowledged on the document within the trial Monday morning that the media reviews that they had been planning to deliver costs in opposition to Dragonfly had been inaccurate, and neither Dragonfly nor any of its principals are targets of their investigation.”
Qureshi additionally shared transcripts of the trial, the place prosecutors mentioned there “has been inaccurate and deceptive public reporting on the federal government’s place regarding Dragonfly and sure of its executives.”
Associated: Dragonfly responds to DOJ scrutiny over Twister Money funding, vows to ‘vigorously defend’ itself
DOJ hints at Dragonfly probe in Twister Money case
On Friday, DOJ prosecutors instructed the company would possibly pursue costs in opposition to Dragonfly for its 2020 funding in Twister Money developer PepperSec, Inc.
In a subsequent submit on X, Qureshi known as the suggestion “unprecedented” and a violation of DOJ coverage, arguing that speculating on third-party prosecution in public was meant to forestall Dragonfly from testifying for the protection.
Qureshi additionally defended Dragonfly’s early backing of Twister Money. “We made this funding as a result of we imagine within the significance of open-source privacy-preserving expertise.” He added that Dragonfly had sought outdoors authorized counsel earlier than investing and was assured that Twister Money was compliant.
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.
These sanctions had been overturned earlier this yr after Twister Money customers filed a civil motion in opposition to OFAC.
Cointelegraph was unable to contact the DOJ for affirmation.
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Twister Money builders charged
Twister Money builders Roman Storm and Roman Semenov had been indicted on costs of cash laundering and sanctions violations in August 2023. Storm’s trial started on July 14 in New York.
On Saturday, Storm issued an pressing enchantment for a further $1.5 million to cowl hovering authorized charges as his high-profile crypto trial enters its third week. Storm, who has already raised over $3.9 million from the crypto group, says the prices are mounting rapidly.
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