“In a space that is completely overrun with bulls**t and with fakers and self-promoters, I think this has actually been a superpower.”
Crypto venture capital firm Dragonfly Capital has closed its fourth fund at $650 million.
The fund comes at a time when the broader cryptocurrency market is facing a severe downturn, with token prices falling and investor enthusiasm weakening.
$650 million fund
Dragonfly’s previous fund, its third, committed $500 million to startups like Polymarket, Rain and Ethena. The new $650 million vehicle is intended to continue that trajectory and will provide the company with capital to pursue early-stage investments at a time when the crypto venture sector is experiencing a slowdown as deal activity declines and companies face challenges in raising additional capital from investors, according to Fortune.
Speaking about the latest development, co-founder Haseeb Qureshi commented,
“We talk out loud and we say what we think. In a space that is completely overrun with bulls**t and with fakers and self-promoters, I think that has actually been a superpower.”
The company’s investments include Layer 1 blockchain projects such as Avalanche, financial services companies such as Amber Group and other crypto projects. Additionally, Dragonfly’s operations have continued through multiple market disruptions, such as the collapse of the Terra Luna ecosystem, the FTX bankruptcy, and an exit from China amid a local cryptocurrency crackdown.
Research linked to Tornado Cash Investment
It has also faced regulatory scrutiny from the Department of Justice (DOJ). In July 2025, prosecutors informed a federal judge that they were considering criminal charges against employees of the crypto venture company, including general partner Tom Schmidt, in connection with the 2020 Tornado Cash investment.
The statement was made by prosecutor Nathan Rehn before District Judge Katherine Polk Failla of the Southern District of New York during a break in the trial of Tornado Cash developer Roman Storm, who was later convicted of conducting money transfer operations without a license. Dragonfly co-founder Haseeb Qureshi clarified that the company has fully cooperated with the government investigation, which began in 2023. declared that if charges are filed, they intend to defend themselves.
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The Justice Department later backtracked and no charges were filed against Schmidt.
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