Crypto venture firm Dragonfly Capital has closed its fourth investment fund at $650 million. The capital raise comes amid a broader market downturn and follows regulatory scrutiny related to the firm’s past investment in Tornado Cash.
Dragonfly Capital has secured $650 million for its latest venture fund. This new capital will target early-stage crypto startups during a period of decreased venture activity.
The firm’s previous $500 million fund backed projects like Polymarket and Ethena. Co-founder Haseeb Qureshi commented on the firm’s approach in a recent statement.
“We talk out loud and we say what we think,” Qureshi said. *“In a space that is just completely flooded with bulls*t and with fakers and self-promoters, I think that has actually been a superpower.”
Dragonfly’s portfolio includes the Avalanche blockchain and Amber Group. The firm has navigated major industry disruptions including the collapses of Terra Luna and FTX.
The venture firm recently faced regulatory attention from the Department of Justice. Prosecutors in 2025 indicated they were considering charges against general partner Tom Schmidt.
The scrutiny was linked to a 2020 investment in Tornado Cash. Qureshi stated the firm cooperated fully with the government investigation that began in 2023.
The Justice Department later declined to file any charges against Schmidt. Dragonfly proceeds with its new fund as the broader crypto market remains under pressure.
