Dragonfly Capital Launches $650M Crypto Fund Amid Market Turmoil
Crypto enterprise capital agency Dragonfly Capital has closed its fourth fund at $650 million.
The fund comes because the broader cryptocurrency market faces a extreme downturn, with token costs declining and investor enthusiasm weakened.
$650 Million Fund
Dragonfly’s earlier fund, its third, deployed $500 million into startups akin to Polymarket, Rain, and Ethena. The new $650 million car goals to proceed that trajectory and can present capital for the agency to pursue early-stage investments at a time when the crypto enterprise sector is experiencing a slowdown as deal exercise declines and companies face challenges in elevating extra capital from traders, in keeping with Fortune.
Speaking in regards to the newest improvement, co-founder Haseeb Qureshi commented,
“We speak out loud and we are saying what we expect. In an area that’s simply fully flooded with bulls**t and with fakers and self-promoters, I believe that has really been a superpower.”
The agency’s investments have included Layer 1 blockchain tasks akin to Avalanche, monetary providers companies like Amber Group, and different crypto tasks. Besides, Dragonfly’s operations have continued by a number of market disruptions, such because the collapse of the Terra Luna ecosystem, the FTX chapter, and a transfer away from China amid a neighborhood crypto crackdown.
Scrutiny Linked to Tornado Cash Investment
It has additionally confronted regulatory scrutiny from the Department of Justice (DOJ). In July 2025, prosecutors knowledgeable a federal decide that they have been contemplating legal expenses in opposition to staff of the crypto enterprise agency, together with normal accomplice Tom Schmidt, in relation to the 2020 funding in Tornado Cash.
The assertion was made by prosecutor Nathan Rehn to District Judge Katherine Polk Failla of the Southern District of New York throughout a break within the trial of Tornado Cash developer Roman Storm, who was later convicted of working an unlicensed cash transmission. Dragonfly co-founder Haseeb Qureshi clarified that the agency has absolutely cooperated with the federal government investigation, which started in 2023. He had then stated that if expenses are filed, they intend to defend themselves.
The Justice Department later backtracked, and no expenses have been filed in opposition to Schmidt.
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