“In a space that is completely inundated with nonsense, phonies and self-promoters, I think it’s actually been a superpower.”
Crypto venture capital firm Dragonfly Capital has closed its fourth fund with $650 million.
The fund comes as the broader cryptocurrency market faces a severe downturn, with token prices falling and investor enthusiasm weakening.
$650 million fund
Dragonfly’s previous fund, its third, deployed $500 million into startups such as Polymarket, Rain and Ethena. The new $650 million vehicle aims to continue that trajectory and will provide capital for the company to make early-stage investments at a time when the crypto business sector is experiencing a slowdown as transaction activity declines and companies face challenges raising additional capital from investors, according to Fortune.
Speaking about the latest development, co-founder Haseeb Qureshi commented:
“We speak out loud and say what we think. In a space that is completely inundated with nonsense, phonies and self-promoters, I think it’s actually been a superpower.”
The company’s investments have included 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 bankruptcy of FTX, and a shift away from China amid a local crackdown on cryptocurrencies.
Scrutiny 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 bringing criminal charges against the cryptocurrency company’s employees, including general partner Tom Schmidt, in connection with the 2020 investment in Tornado Cash.
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 operating a money transfer without a license. Dragonfly co-founder Haseeb Qureshi clarified that the company has fully cooperated with the government investigation, which began in 2023. He then stated that if charges are filed, they intend to defend themselves.
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The Justice Department later reversed course and no charges were filed against Schmidt.
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