DOJ Weighs Additional Charges In Dragonfly Case Linked To Tornado Cash Trial

• DOJ may pursue charges against Dragonfly executives linked to Tornado Cash.
• Judge orders jury limiting instruction with filings due July 23, 2025.
• Roman Storm trial highlights KYC emails and Schmidt’s Fifth Amendment stance.

The U.S. Department of Justice (DOJ) is reportedly considering potential charges against individuals at cryptocurrency venture capital firm Dragonfly, as proceedings in United States v. Roman Storm continue. Assistant U.S. Attorney (AUSA) Rehn disclosed during a recent court session that investigations remain open regarding certain members of the firm, including General Partner Tom Schmidt. This revelation, which was made public in court, prompted Rehn to request that the transcript of his remarks be sealed, according to Inner City Press.

During the trial, AUSA Rehn confirmed that conversations had taken place with Schmidt’s attorney, John Bostick. When the presiding judge inquired whether the DOJ was considering prosecuting everyone at Dragonfly, Rehn clarified that not all individuals were under review but acknowledged Schmidt and others were subjects of interest. Dragonfly had been a backer of Tornado Cash, the crypto mixer at the center of the case.

Emails presented in court have shown correspondence between Roman Storm, his cofounders, and Dragonfly’s executives, including Schmidt and Hossain “hosseeb” Hossain. One email highlighted discussions around adding Know Your Customer (KYC) features to the platform, indicating direct engagement between Tornado Cash developers and Dragonfly representatives.

The defense had sought Schmidt’s testimony, but he invoked his Fifth Amendment rights through counsel. It remains uncertain if Schmidt will be granted immunity or choose to testify should such an offer be extended. The court is expected to revisit these issues as the trial resumes next week, with closing arguments anticipated during the same period.

Judge Issues Limiting Instruction Ruling

In a separate development, the presiding federal judge issued a ruling on a proposed jury limiting instruction, directing both parties to file related papers by the evening of July 23, 2025. The instruction aims to provide jurors with guidance on how specific evidence should be considered during deliberations. The exact language or evidence referenced in the instruction has not been disclosed.

A tweet from Inner City Press confirmed the judge’s decision and noted that additional filings are required before the trial proceeds further. Limiting instructions are typically employed to prevent jurors from misinterpreting or overgeneralizing evidence beyond its intended scope.

Case Background

Roman Storm faces allegations of using Tornado Cash to launder funds associated with the North Korean Lazarus Group’s cyber operations. The trial has included testimony from IRS-CI Agent George and the reading of messages between Storm and his associates, including cofounders Alexey Pertsev and Roman Semenov.

Previous proceedings have addressed motions in limine and disputes over expert witnesses. Further details about the DOJ’s consideration of charges against Dragonfly personnel are expected as the trial advances into its final stages.