Crypto venture capital firm Dragonfly Capital has closed its fourth fund at $650 million.
The fund comes as the broader cryptocurrency market faces a severe downturn, with token prices falling and investor enthusiasm waning.
$650 million fund
Dragonfly’s previous fund, the third, deployed $500 million in startups such as Polymarket, Rain and Ethena. The new $650 million vehicle aims to further that goal and will provide the company with capital to pursue early-stage investments at a time when the crypto venture capital sector is experiencing a slowdown as deal activity declines and companies struggle to raise additional capital from investors, according to Fortune.
Speaking about the latest development, co-founder Haseeb Qureshi commented:
“We speak out loud and we say what we think. In a space completely flooded with bullshit and fakers and self-promoters, I think that’s actually been a superpower.”
The company’s investments include layer 1 blockchain projects such as Avalanche, financial services companies like Amber Group, and other crypto projects. Additionally, Dragonfly’s operations continued despite multiple market disruptions, such as the collapse of the Terra Luna ecosystem, the bankruptcy of FTX, and the move away from China amid a local crypto crackdown.
Tornado Cash Investment Related Review
It has also been the subject of regulatory review by the Department of Justice (DOJ). In July 2025, prosecutors informed a federal judge that they were considering 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 to 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 an unlicensed money transfer business. Dragonfly co-founder Haseeb Qureshi clarified that the company had fully cooperated with the government investigation, which began in 2023. He then said that if charges were filed, they intended to defend themselves.