DOJ Disbands Crypto Enforcement Unit to Prioritize Terrorism and Fraud Cases
In a significant policy shift, the U.S. Department of Justice (DOJ) has announced the immediate disbandment of its National Cryptocurrency Enforcement Team (NCET). This move redirects the department’s focus toward prosecuting crimes involving terrorism, narcotics trafficking, human trafficking, organized crime, hacking, and cartel financing that utilize digital assets.
Deputy Attorney General Todd Blanche conveyed this decision in a memo to DOJ employees, criticizing the previous administration’s approach as a “reckless strategy of regulation by prosecution.” Blanche emphasized that the DOJ will no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the actions of their end users or for unintentional regulatory violations. Instead, the focus will shift to individuals who exploit digital assets for criminal purposes.
This policy change aligns with President Donald Trump’s executive order advocating for open access to blockchain networks and reflects his broader support for easing regulations in the digital assets industry, in which he holds a personal stake. Blanche, a former defense attorney for Trump and recent appointee as Deputy Attorney General, issued the directive, signaling a significant shift in the Justice Department’s approach to cryptocurrency regulation.
The NCET, established in 2022 under President Joe Biden’s administration, was tasked with addressing the illicit use of cryptocurrencies and played a central role in high-profile cases, including the investigation into Binance and its founder, Changpeng Zhao. With the unit’s dissolution, ongoing investigations inconsistent with the new policy are to be closed.
AP News
Furthermore, the DOJ’s Market Integrity and Major Frauds Unit will cease cryptocurrency enforcement to prioritize other issues, such as immigration and procurement fraud. This realignment reflects the Trump administration’s commitment to fostering innovation in the digital assets sector while concentrating law enforcement resources on combating serious criminal activities facilitated by cryptocurrencies.
Industry advocates have welcomed this shift, viewing it as a move away from overregulation and toward a more balanced approach that distinguishes between legitimate digital asset businesses and those exploiting the technology for illicit purposes. However, some critics express concern that reducing oversight could inadvertently create opportunities for bad actors to misuse cryptocurrencies.
Finance Magnates
As the DOJ recalibrates its focus, the cryptocurrency landscape in the United States is poised for a new era, one that seeks to balance the promotion of innovation with the imperative of safeguarding national security and preventing financial crimes.
