Trump Administration Shuts Down The Department Of Justice's Crypto Crime Unit

The U.S. Department of Justice has terminated its specialized cryptocurrency investigation team, signaling a significant shift in federal oversight of digital assets.

What Happened: In a detailed internal memorandum, Deputy Attorney General Todd Blanche announced the immediate dissolution of the National Cryptocurrency Enforcement Team (NCET), aligning with President Donald Trump's directive to foster a more crypto-friendly regulatory environment.

The move reflects the administration's broader push to scale back enforcement actions against the digital asset industry.

Blanche, a key figure in the DOJ and Trump's former defense attorney, criticized the previous administration's approach to cryptocurrencies.

"The Justice Department's role isn't to regulate digital assets, but the prior leadership pursued aggressive prosecution tactics," he wrote in the memo, according to Fortune.

He emphasized that the decision to disband NCET complies with Trump's January executive order aimed at clarifying rules for the crypto sector, reducing what the administration views as overreach.

Launched in 2021 during President Joe Biden's tenure, NCET brought together prosecutors from the DOJ's money laundering and cybercrime divisions, along with attorneys from various regional offices.

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Why It Matters: The unit spearheaded high-profile cases, including probes into Tornado Cash, a service that anonymized crypto transactions, and Avraham Eisenberg, who allegedly manipulated a trading platform to steal over $100 million.

NCET also targeted North Korean operatives involved in laundering funds from digital asset heists.

In his memo, Blanche instructed DOJ staff to prioritize cases involving fraud or theft targeting crypto investors, rather than pursuing actions against exchanges, anonymizing services, or offline storage solutions.

This directive marks a departure from NCET's broader investigative scope, which often focused on the infrastructure of the crypto ecosystem.

The closure of NCET is the latest in a series of regulatory rollbacks under Trump's administration.

Recent actions include orders to agencies like the Securities and Exchange Commission and Commodity Futures Trading Commission to ease restrictions on digital assets.

Trump has also championed pro-crypto policies, such as a March executive order establishing a national Bitcoin and digital assets reserve.

At a recent Washington summit, he hosted prominent crypto industry leaders to discuss legislative goals, reinforcing his commitment to the sector.

"We're taking bold steps to position America as the global leader in Bitcoin and cryptocurrencies," Trump had said.

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