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>>Dragonfly Capital Announces $650M Cryptocurrency Investment Fund Amid Market Volatility

Dragonfly Capital Announces $650M Cryptocurrency Investment Fund Amid Market Volatility

crypthub

about 5 hours ago

Fund Closure Amid Market Downturn

Dragonfly Capital closed its $650 million fourth fund despite a crypto market downturn, with token prices falling and investor enthusiasm waning. The firm’s prior third fund deployed $500 million into startups like Polymarket and Ethena. The new fund aims to sustain early-stage investments as the venture sector slows, with deal activity declining and capital-raising challenges.

Resilience Through Market Crises

Dragonfly has navigated past crypto crises, including Terra Luna’s collapse, FTX’s bankruptcy, and China’s crypto crackdown. Its investments span Layer 1 blockchains like Avalanche and financial services firms such as Amber Group. Co-founder Haseeb Qureshi emphasized transparency, calling it a “superpower” in a market flooded with misinformation.

Regulatory Scrutiny and Legal Developments

The firm faced DOJ scrutiny over its 2020 Tornado Cash investment, with prosecutors considering charges against partner Tom Schmidt. Qureshi stated full cooperation with the 2023 investigation, though no charges were ultimately filed. The firm remains active despite ongoing regulatory challenges and market volatility.