DoJ Dey Weigh Charges Against Dragonfly VC Over Tornado Cash
US Department of Justice dey consider criminal charges against Dragonfly VC for their investment inside Tornado Cash, na di be the first time say DoJ dey target early investors for one sanctioned crypto mixer. Dragonfly co-founder Haseeb Qureshi don promise say dem go defend the company, talk say their 2020 investment dey legal and regulators don give them assurance before. Tornado Cash, Ethereum-based privacy mixer, e get sanction for 2022 for alleged North Korean money laundering and e small time comot for sanction in 2025. Legal experts dey warn say if dem charge Dragonfly VC for Tornado Cash investment, e fit kill venture capital for privacy-tech. This move go extend responsibility beyond developers and fit change how US dey regulate crypto, fit affect trading sentiment and capital flows for privacy tokens.
Bearish
Di DoJ move to charge Dragonfly VC for im Tornado Cash investment dey bring big regulatory risk for privacy-focused crypto projects. For short term, dis news fit make traders and investors start dey avoid risk, especially around Tornado Cash’s TORN token and similar privacy mixers. For long term, venture capital firms fit reduce or delay fund for privacy technology dem, wey go limit liquidity and reduce token values. Di precedent wey dey target investors fit also make compliance cost high and legal matter no clear, wey go make market confidence and price for affected assets fall.