Dragonfly managing accomplice Haseeb Qureshi revealed that the U.S. Division of Justice (DOJ) won’t convey felony prices in opposition to the crypto enterprise agency, as Twister Money co‑founder Roman Storm’s federal trial in Manhattan neared its conclusion.
Qureshi, whose funding agency backed a number of blockchain startups, wrote on social media that federal prosecutor Nathan Rehn advised the court docket July 28 that neither Dragonfly nor its principals have been targets of the division’s investigation.
He known as the general public clarification “unprecedented” and “a transparent violation of DOJ coverage,” citing the Justice Division’s ordinary follow of retaining goal data confidential. The event comes days after Qureshi publicly denounced the DOJ over concentrating on the agency for backing Twister Money in 2020 as a part of Storm’s trial.
Storm, who co‑based Twister Money in 2019 as an open‑supply protocol to anonymize cryptocurrency transactions, is charged with laundering greater than $1 billion and violating U.S. sanctions in opposition to North Korea’s Lazarus Group.
The trial, which started July 14 in U.S. District Court docket in Manhattan, has heard testimony from blockchain tracing specialists and former Twister Money customers. Closing arguments are anticipated later this week.
Twister Money was added to the U.S. Treasury Division’s sanctions listing in August 2022, marking the primary time a software program protocol confronted such motion. Prosecutors allege Storm personally authorized transactions for illicit actors, whereas protection attorneys argue that the protocol’s code, not its creator, ought to be judged.
Dragonfly invested in Twister Money in 2020 after acquiring an out of doors authorized opinion that the mixer complied with U.S. anti‑cash‑laundering steerage issued by the Monetary Crimes Enforcement Community (FinCEN).
The result of Storm’s case might reshape how open‑supply builders are held accountable for consumer exercise. If convicted, Storm faces as much as 45 years in jail, a sentence that critics warn might chill innovation in privateness‑enhancing instruments.
Qureshi wrote:
“With that behind us, the main focus ought to stay on Roman Storm’s trial, which is now nearing closing arguments as quickly as this week. Its consequence could have large implications for open-source software program and privateness rights in America.”
