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.

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Coalition-building isn’t so much about moving to the center as it is about merging clusters of single-issue voters.

If you were in another body, having another experience, you would be exactly the same.

Very glad to have this behind me. It never made sense but neither does the @rstormsf trial. Wild how quickly you can have your life upended. I'm grateful for those who saw through it and for my stellar legal team. Now, turning my attention back to @krakenfx. 🐙🚀

French authorities have launched a politically-motivated criminal investigation into X over the alleged manipulation of its algorithm and alleged “fraudulent data extraction.” X categorically denies these allegations. This investigation, instigated by French politician Eric Bothorel, egregiously undermines X’s fundamental right to due process and threatens our users’ rights to privacy and free speech. Mr Bothorel has accused X of manipulating its algorithm for “foreign interference” purposes, an allegation which is completely false. French authorities have requested access to X’s recommendation algorithm and real-time data about all user posts on the platform in order for several “experts” to analyze the data and purportedly “uncover the truth” about the operation of the X platform. One of those “experts” is David Chavalarias, who spearheads the “Escape X” campaign. Formerly known as “HelloQuitteX”, the campaign is dedicated to encouraging X users to leave the platform. A second “expert,” Maziyar Panahi, has previously participated in research projects with David Chavalarias that demonstrate open hostility towards X. The involvement of these individuals raises serious concerns about the impartiality, fairness, and political motivations of the investigation, to put it charitably. A predetermined outcome is not a fair one. What’s more, French authorities have classified X as an “organized gang” for the purpose of the investigation. This characterization, which is usually reserved for drug cartels or mafia groups, enables the French police to deploy extensive investigative powers under French law, including wiretapping the personal devices of X employees. X remains in the dark as to the specific allegations made against the platform. However, based on what we know so far, X believes that this investigation is distorting French law in order to serve a political agenda and, ultimately, restrict free speech. For these reasons, X has not acceded to the French authorities’ demands, as we have a legal right to do. This is not a decision that X takes lightly. However, in this case, the facts speak for themselves. X is committed to defending its fundamental rights, protecting user data and resisting political censorship.

If it upsets you that someone doesn’t respond, communicate, or give you attention, you may be incorrectly assessing your importance.

Most companies fail at product and distribution but it’s easier to blame distribution. If you’re failing at distribution, check the product.

“ Inspiration is perishable “

It’s the people who most want to be seen as selfless that you have to worry about.