As the Tornado Cash case nears its conclusion, the Department of Justice issued a rare clarification that the venture capital firm is not a target of the investigation. As the criminal case against Tornado Cash co-founder Roman Storm nears its conclusion, the U.S. Department of Justice (DOJ) issued an unusual clarification in court. U.S. Attorney Nathan Rehn stated that the allegations against Dragonfly and its executives, as well as related media reports, are inaccurate and misleading. According to Dragonfly Managing Partner Haseeb Qureshi, U.S. Attorney Nathan Rehn stated in court on July 28 that the crypto venture capital firm and its principals are not targets of the investigation. This statement came as a relief to Dragonfly, which had been under pressure for its 2020 investment in Tornado Cash. In fact, Dragonfly had conducted a compliance assessment before the investment to ensure that the firm complied with U.S. FinCEN's anti-money laundering regulations. Meanwhile, Roman Storm, co-founder of Tornado Cash, is now accused of laundering over $1 billion and violating US sanctions against the North Korean hacker group Lazarus, stemming from his 2019 release of an open-source cryptocurrency privacy protocol. Since opening in Manhattan federal court on July 14th, the trial has entered a critical phase, with blockchain analysts and former platform users testifying. Prosecutors are attempting to prove Storm actively participated in reviewing illegal transactions, while the defense, citing the principle of "code neutrality," argues that developers should not be held responsible for how the protocol is used. The market is currently focused on the potential precedent set by the final verdict in this case for determining open-source developer liability. If convicted on all charges, Storm faces up to 45 years in prison. The DOJ's rare clarification is noteworthy. Publicly excluding specific institutions from suspicion in court is unconventional, as the Department of Justice typically remains silent on the subjects of its investigations. This statement appears intended to prevent the case from impacting the venture capital industry and to refocus attention on the Storm case. With closing arguments approaching, the verdict in this case will not only determine his personal fate but also serve as a bellwether for how open source software liability is viewed in the United States. As Qureshi stated, "The outcome will have profound implications for the future of privacy and open source innovation." #TornadoCashTrial #RomanStormCase #DragonflyClarification