Dragonfly Capital might be the goal of federal costs 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 publish, Dragonfly Capital managing companion Haseeb Qureshi defended the agency’s early backing of Twister Money — an open-source protocol that enables customers to obscure blockchain transactions — relationship again to August 2020.
“We made this funding as a result of we consider within the significance of open-source privacy-preserving know-how,” stated Qureshi, including that the corporate had consulted outdoors 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 have 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 legal trial is underway in New York, the place he faces federal costs that would lead to greater than 40 years in jail.
On Friday, prosecutors indicated they could pursue costs in opposition to Dragonfly for its funding within the Twister Money staff 5 years in the past.
“We consider the federal government’s assertion in court docket in the present day was primarily to undermine a protection of Twister Money,” Qureshi stated, including that bringing costs in any case this time could be “outrageous.”
“We don’t consider the DOJ would truly deliver such absurd and groundless costs. 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 software, however prosecutors don’t purchase it
Twister Money’s builders described the platform as a decentralized, non-custodial privateness software that enabled customers to ship and obtain digital property with out revealing their pockets historical past.
Sometimes called 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 International Belongings Management (OFAC) sanctioned Twister Money, alleging it facilitated multibillion-dollar cash laundering, supported cybercrime and posed a menace to nationwide safety. The software was additionally accused of obfuscating illicit transactions.
Regardless of sanctions and. legal investigations, Twister Money noticed a resurgence in 2024. Knowledge from Flipside Crypto confirmed $1.9 billion in deposits through the first six months of that 12 months.
Associated: Choose permits testimony on ‘possible’ Twister Money code modifications
