- DOJ has not ruled out charging Dragonfly partner Tom Schmidt after court reviewed internal emails on Tornado Cash and potential KYC options.
- Email exchanges show The Tornado Cash team sought KYC feedback from Dragonfly’s Tom Schmidt and Haseeb Qureshi before any compliance steps were taken.
- Tom Schmidt declined to testify by invoking the Fifth, while the defense team advocates for immunity ahead of next week’s trial proceedings.
The U.S. Department of Justice is reportedly still considering criminal charges against Dragonfly partner Tom Schmidt in connection with the ongoing Tornado Cash trial, as revealed in recent court documents.
Court Documents Reveal DOJ Focus on Dragonfly Ties
According to a tweet by Wu Blockchain, email exchanges between Tornado Cash co-founder Roman Storm and Dragonfly executives, including Haseeb Qureshi and Tom Schmidt, were presented in court. The emails showed discussions about integrating Know-Your-Customer (KYC) features into the Tornado Cash platform—a critical issue in the trial.
These communications form part of the DOJ’s investigation, which remains active not just against Storm but potentially also Dragonfly personnel. The emails demonstrate that KYC compliance was discussed but not adopted, raising questions about decision-making and awareness among investors.
Schmidt Invokes Fifth Amendment as Immunity Remains Unclear
Schmidt, currently a General Partner at Dragonfly, was expected to testify in the defense of Roman Storm. However, as reported by journalist Eleanor Terrett on X, Schmidt invoked his Fifth Amendment right through legal counsel. The defense has reportedly pushed for Schmidt to receive immunity, though the DOJ has not made a decision on that matter.
Assistant U.S. Attorney Thane Rehn, speaking in court, confirmed that the DOJ is weighing charges against multiple individuals at Dragonfly. Following this statement, Rehn requested that his comments be sealed from the transcript, as noted by @innercitypress.
Trial Continues Next Week with Closing Arguments Ahead
The trial against Roman Storm continues to draw attention as a rare legal case targeting the infrastructure of crypto privacy tools. With Dragonfly’s involvement now under closer scrutiny, any future charges could extend beyond the original defendants. The trial is set to resume next week, with closing arguments also expected during the next session.
