What it means. The money transmission charge was key. This is a huge loss for for the developers of non-custodial software.

So it sounds like no verdict on money laundering (gov't could possibly re-prosecute). Guilty on conspiracy to transmit money, and not guilty on conspiracy to evade sanctions. Happy about 1 and 3. The money transmission charge was inappropriate from the start and the way the legal rulings went down last winter may have doomed the outcome with a jury that can only find facts. This needs to be appealed, and Coin Center will do everything to make sure the judge gets the law right the next time around.

Most investigation tools paraded in front of a jury, in addition to never begin audited, actively focus on collapsing the tx graph so your local TLA desk jockey can "follow the money" after passing their 8hr cert.

While investigating the spam campaign of 2015, I stumbled upon a wallet which I believed to be the QuadrigaCX exchange but I wasn't able to confirm my theory. Years later, it appeared that these weird transactions were G.Cotten robbing his own exchange.

As of Thursday, in their Rule 29 response, the DOJ is still pushing this theory that Storm, by publishing TC software, provided a "valuable service" to a sanctioned entity because DPRK used the protocol. This flawed principle is limitless: if I make a hammer with no particular end user in mind and somehow that hammer ends up being used by DPRK, I provided them a "valuable service." But you don't see them going after Apple for the iPhone, Google for its tech suite, etc., even though these tech tools are used by the DPRK. That's because this is a gross distortion of the law. Back when we @fund_defi @jchervinsky wrote our amicus brief in support of @rstormsf's MTD, we reviewed over 100 sanctions cases and provided the court with a table of them - in every single case there was nexus between the sanctioned entity and the defendant, some evidence the defendant directly connected with the SDN or created a tool *for* the SDN specifically. There was no case - none - where a defendant made a tool with no particular end user in mind and was then convicted of violating sanctions because an SDN ended up with that tool in hand.

All the witch hunt charges to protocols were dropped except for Tornado Cash and Samourai Makes ya think! Against the backdrop of the most "pro crypto" administration in history. Free them

Dragonfly invested into PepperSec, Inc., the developers of Tornado Cash, in August of 2020. We made this investment because we believe in the importance of open-source privacy-preserving technology. Prior to our investment, we obtained an outside legal opinion that confirmed that Tornado Cash as built complied with the law, under the guidance given by FinCEN in 2019. The government has now stated in open court that they are contemplating charges against Dragonfly for having invested into the Tornado Cash team in 2020. On counsel’s advice, we have refrained from public comment. But we can no longer remain silent. We believe deeply in Americans’ right to privacy, and the lack of it remains one of crypto’s largest unsolved problems. We therefore stand by our investment. We did not operate or exercise any control over Tornado Cash, we had no contact with any malicious users, we always encouraged our portfolio companies to follow the law, and we maintain that Tornado Cash itself has a lawful right to exist—a view reinforced by Van Loon v. Department of the Treasury and OFAC’s subsequent rescission of sanctions. Charging a venture firm for a portfolio company’s alleged misconduct would be unprecedented, especially under these circumstances. In 2023 we received a DOJ subpoena and have fully cooperated with the government’s investigation of Tornado Cash, confident that we have always complied with the law. The DOJ has made clear that we are not ourselves a target of their investigation. As with every investment, we provided PepperSec the same advice and support we offer all portfolio companies. We believe the government’s statement in court today was primarily to undermine a defense of Tornado Cash—to make it more difficult for the defense to call Tom to testify on the stand. After all of this time—years later—bringing charges against Dragonfly would be outrageous, contrary to the facts and the law, and would induce a chilling effect onto all investment into crypto and privacy-preserving technologies in America. We don’t believe the DOJ would actually bring such absurd and groundless charges. But if they do, we intend to vigorously defend ourselves.

BREAKING: Morning hearings in US. v Storm revealed that Dragonfly Capital VC Thomas Schmidt's home was raided and devices seized as part of the Storm investigation, and that both he and Dragonfly's Haseeb Qureshi have been "subjects" of the investigation. That and more:

WE HAVE SEEN SOME SELLERS COME IN. ONCE THATS CLEANED OUT THE LINES ON MY CHART SAY 150.