- The US Department of Justice has disbanded a unit focused on enforcing cryptocurrency regulations.
- According to Deputy Attorney Todd Blanche, the DOJ does not act as a cryptocurrency regulator.
- Blanche emphasized that the department’s focus will shift to prosecuting those who exploit digital asset investors instead of going after crypto firms.
On Tuesday, the US Department of Justice (DOJ) officially ended its cryptocurrency enforcement unit. They notified employees through a memo, encouraging them to concentrate on criminal cases involving digital assets rather than targeting cryptocurrency companies.
DOJ dismantles crypto enforcement team, sets new priorities for staff
The DOJ put an end to its unit that handled cryptocurrency investigations, as revealed in a memo distributed to employees. Deputy Attorney Todd Blanche announced the termination of the National Cryptocurrency Enforcement Team (NCET), with initial reports surfacing on Tuesday.
Blanche clarified that the Justice Department does not oversee the regulation of digital assets. He insisted on the immediate dissolution of the NCET, underscoring the DOJ’s commitment to aligning with President Donald Trump’s endorsement of digital assets.
He pointed out that the previous administration under President Joe Biden used the DOJ to regulate the crypto industry through an aggressive “regulation by prosecution” approach.
Blanche directed DOJ personnel to focus on prosecuting individuals who deceive digital asset investors or use cryptocurrencies for illegal activities such as terrorism, organized crime, hacking, and human trafficking.
The memo also indicated that the DOJ would no longer pursue legal action against crypto exchanges, wallets, and mixing platforms as it had in the past. Blanche asked for the closure of cases that do not align with this revised strategy.
SIGNIFICANT update regarding DOJ’s approach to prosecution of digital assets – “the Department will cease engaging in regulation by prosecution in this area.”
This message from the Deputy AG clarifies several important points, including the fact that the DOJ is NOT targeting exchanges and wallets for… pic.twitter.com/rOyGocdFbn
— Amanda Tuminelli (@amandatums) April 8, 2025
The decision to close the DOJ’s cryptocurrency enforcement unit represents a further step by the Trump administration to roll back the regulatory measures imposed by the previous government on businesses.
The NCET was a collaborative task force that included prosecutors from the DOJ’s money laundering and cybercrime divisions along with attorneys from various district offices.
The team was instrumental in several significant crypto-related cases, including the prosecutions of Tornado Cash and the founders of Binance and BitMEX. Additionally, NCET spearheaded investigations into crypto laundering activities tied to North Korea from hacking incidents.