The U.S. government is considering suing the investment company Dragonfly for Torado Cash.

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According to a report by FinanceFeeds on July 26, Deep Tide TechFlow news states that the U.S. government is reviewing whether Dragonfly's support for PepperSec, Inc. (the team behind Tornado Cash) in 2020 violated any laws.

Haseeb Qureshi, co-founder of Dragonfly, confirmed on Friday that prosecutors mentioned the possibility of charges being brought in court during the ongoing criminal trial of Tornado Cash co-founder Roman Storm.

Qureshi stated that he had consulted legal advisors before the investment and believed that Tornado Cash was compliant, and said, "I do not believe the Department of Justice would make such ridiculous accusations."

Storm is currently on trial in New York, facing federal charges of money laundering and violating sanctions. Prosecutors believe that Tornado Cash, which conceals blockchain transaction history by pooling and redistributing cryptocurrency, was used to hide illicit funds. If convicted, he could face decades in prison.

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