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.

Excited to announce that I‘ve joined Paradigm as VP of Brand & Design. Looking forward to exploring the frontier with @matthuang , @alanapalmedo , @David_Swain and the brilliant team and portfolio @paradigm

We've raised a $100M Series A from @ThriveCapital, @greenoaks, and a host of great angels. Everyone’s brain can work better. Engineering that idea into reality is the most impactful advancement we can make to life.

Here is my testimony from the Senate Banking Committee last week I focused on the promise of DeFi—which does for trading and lending what stablecoins do for payments—and how market structure legislation must not inadvertently harm it Link to longer written testimony in 🧵

I’m excited to announce our $185M Series C valuing Kalshi at $2B. The round was led by Paradigm with participation from Sequoia, Multicoin, Peng Zhao, Neo, and Bond Capital. People choose to work at Kalshi not because of the money we've raised, but because of our ambition: build the most important financial market on the planet. Today, we celebrate our team and community who have taken prediction markets mainstream and made Kalshi one of the fastest growing companies in America. What once felt impossible now looks inevitable.

Recent reporting projects that stablecoins could grow into a $3.7 trillion market by the end of the decade. That scenario becomes more likely with passage of the GENIUS Act. A thriving stablecoin ecosystem will drive demand from the private sector for US Treasuries, which back stablecoins. This newfound demand could lower government borrowing costs and help rein in the national debt. It could also onramp millions of new users—across the globe—to the dollar-based digital asset economy. It’s a win-win-win for everyone involved: ✅The private sector ✅ The Treasury ✅ Consumers These are the fruits of smart, pro-innovation legislation.