Fintech

📅 July 26, 2025 | 📰 CoinDesk
The U.S. Department of Justice (DOJ) is considering filing criminal charges against current and former employees of Dragonfly Capital, one of the most influential venture capital funds in the crypto ecosystem. The motive? Investments made years ago in Tornado Cash, the privacy protocol sanctioned by the U.S. government.
🕵️‍♂️ What's Going On?
Sources close to the case say the DOJ is investigating whether employees who continued to interact with or benefit from the protocol violated federal sanctions after Tornado Cash was blacklisted by OFAC in 2022.
🔹 Dragonfly's investments date back to before that sanction, but the case focuses on subsequent actions.
🔹 Dragonfly as a firm has not been charged, but the focus is on certain individuals on the team.
🔹 The DOJ is evaluating whether criminal liability can be applied retroactively in these types of cases.
⚖️ Why does it matter?
This case could mark a legal turning point for venture capital in crypto:
🔸 Can investors be held liable for supporting tools that later become politically sensitive?
🔸 To what extent can the law be applied retroactively to decentralized protocols without central control?
🔸 Where is the freedom of innovation in the face of increasing regulatory limits?
🗨️ Dragonfly responds
“We fully support regulatory processes and will cooperate with any investigation. The investments in Tornado Cash were made prior to any official designation by the US government.”
The names of the employees under investigation have not been revealed.
Topic Opinion:
The Dragonfly vs. DOJ case isn't just legal, it's symbolic. It represents the clash between decentralization as a principle and the traditional regulatory apparatus that demands absolute control and tracking.
Criminalizing developers or investors who bet on privacy before it was officially “unacceptable” sets a disturbing precedent: if a tool that is legal today becomes illicit tomorrow, will all its proponents be retroactively criminal?
Privacy isn't a crime. And betting on it shouldn't make you a suspect by default. If this trend continues, open and permissionless innovation in crypto could enter a phase of institutional self-censorship.
💬 Is it fair to criminalize an investment if it wasn't illegal at the time?
Leave Your Comment...
#Cryptolaw #defi #Web3 #fintech #CryptoNews

$XRP
Binance Square Article
Cathie Wood’s Ark Invest, known for its bold bets on disruptive innovation, has once again reshuffled its portfolio this time trimming significant positions in two major crypto-linked companies. On July 24, Ark offloaded approximately $12 million worth of Coinbase (COIN) shares and $9.8 million in Block (SQ) shares, continuing a recent trend of profit-taking and strategic reallocation.
Coinbase (COIN): $12M Worth Sold
$CVX
Coinbase, the largest publicly traded U.S. crypto exchange, has been a favorite of Ark’s flagship fund, ARK Innovation ETF (ARKK), since its IPO. Despite the firm’s strong belief in crypto infrastructure, Ark has been consistently reducing its position in COIN over the past several months, especially after the stock’s rally in 2024.
This $12 million sale aligns with Ark’s strategy to lock in profits amid market volatility. The sale came as COIN hovered near its multi-month highs, driven by optimism around crypto ETF approvals and increased trading volumes.
Block (SQ): $9.8M Worth Sold
Ark also sold nearly $10 million of shares in Block, formerly Square, another crypto-integrated fintech firm. Block’s focus on Bitcoin through Cash App and its mining ambitions have made it a significant holding for Ark. However, this sale suggests a recalibration of exposure as market sentiment shifts and macroeconomic headwinds persist.
Strategic Moves or Profit Taking?
Ark Invest’s recent trades may signal a tactical retreat, not a loss of confidence. Historically, Ark has trimmed positions to manage risk or rotate into higher-conviction bets. It's worth noting that both Coinbase and Block remain among Ark’s core holdings.
With the crypto market entering a consolidation phase after the early-year rally, these moves could be preparation for potential volatility ahead or simply a classic “buy low, sell high” maneuver.
Final Thoughts
Ark Invest’s portfolio adjustments are always under close watch by both retail and institutional investors. While some may see these divestments as a bearish signal, they are more likely reflective of Ark’s active management style and market-aware positioning.
#ARKInvest #CathieWood #Coinbase #Block #CryptoStocks #CryptoNews #BinanceSquare #bitcoin #fintech #arkm #TradingStrategy #CryptoInvesting