Qureshi, whose investment firm backed several blockchain startups, wrote on social media that federal prosecutor Nathan Rehn told the court July 28 that neither Dragonfly nor its principals were targets of the department’s investigation.
Storm, who co‑founded Tornado Cash in 2019 as an open‑source protocol to anonymize cryptocurrency transactions, is charged with laundering more than $1 billion and violating U.S. sanctions against North Korea’s Lazarus Group.
Tornado Cash was added to the U.S. Treasury Department’s sanctions list in August 2022, marking the first time a software protocol faced such action. Prosecutors allege Storm personally approved transactions for illicit actors, while defense attorneys argue that the protocol’s code, not its creator, should be judged.
Dragonfly invested in Tornado Cash in 2020 after obtaining an outside legal opinion that the mixer complied with U.S. anti‑money‑laundering guidance issued by the Financial Crimes Enforcement Network (FinCEN).
The outcome of Storm’s case could reshape how open‑source developers are held accountable for user activity. If convicted, Storm faces up to 45 years in prison, a sentence that critics warn could chill innovation in privacy‑enhancing tools.
Qureshi wrote:
“With that behind us, the focus should remain on Roman Storm’s trial, which is now nearing closing arguments as soon as this week. Its outcome will have massive implications for open-source software and privacy rights in America.”
