Justice Department disbands cryptocurrency fraud unit as Trump administration shifts focus
Shreedhar Rathi | Apr 09, 2025, 00:19 IST
( Image credit : AP )
The Justice Department has dismantled its cryptocurrency fraud unit, signaling a shift in enforcement priorities under the Trump administration. This move aligns with efforts to reduce regulatory pressure on the digital asset industry and focus on transnational crime. The administration aims to promote innovation and growth in the crypto sector, integrating cryptocurrencies into mainstream financial systems.
The U.S. Department of Justice has formally dismantled its specialized unit for cryptocurrency fraud investigations, marking a significant shift in federal enforcement priorities under the Trump administration.
In a memo issued Monday night, Deputy Attorney General Todd Blanche ordered the immediate closure of the National Cryptocurrency Enforcement Team (NCET). The move aligns with broader efforts by the administration to reduce the federal government’s role in financial crime enforcement and shift resources toward targeting transnational criminal networks, terrorism, narcotics trafficking, and human smuggling.
The NCET, launched in 2022, was created to address the growing threat of criminal misuse of digital assets. Comprised of attorneys with expertise in cryptocurrency, cybercrime, and money laundering, the unit coordinated with U.S. Attorneys’ offices, the FBI, and regulatory agencies to investigate and prosecute illicit use of virtual currencies. Its focus included targeting crypto exchanges and platforms that facilitated criminal activity and building partnerships with international law enforcement.
Blanche’s directive reflects the administration’s broader philosophy of reducing regulatory pressure on the digital asset industry. The memo cited President Trump’s Executive Order 14178, which emphasized the need for “clarity and certainty” in crypto-related policy to promote innovation and growth. The Justice Department, according to Blanche, will no longer engage in enforcement actions that effectively impose regulatory frameworks on the sector.
The DOJ's Market Integrity and Major Frauds Unit will also end its cryptocurrency enforcement efforts, redirecting attention to other priorities, such as immigration-related crimes and procurement fraud. However, the department's Computer Crime and Intellectual Property Section will continue to provide support and guidance on digital asset issues.
This policy shift comes as the Trump administration deepens its embrace of cryptocurrency. On his third day in office, Trump signed an executive order aimed at transforming the U.S. into the global leader in digital assets. He has since founded World Liberty Financial, launched a branded crypto token known as $TRUMP, and created a federal Strategic Bitcoin Reserve to bolster national crypto holdings.
The administration has established a Digital Asset Markets working group to craft new regulations and explore broader government adoption of crypto technologies. With Treasury Secretary Scott Bessent and A.I. and Crypto Czar David Sacks leading the charge, cryptocurrencies are expected to become more integrated into mainstream financial systems.
While the move to shutter the NCET may spark concern among advocates for stronger oversight in the crypto space, it underscores the Trump administration’s shift away from prosecutorial enforcement in favor of pro-growth, market-friendly policies in the digital currency sector.
In a memo issued Monday night, Deputy Attorney General Todd Blanche ordered the immediate closure of the National Cryptocurrency Enforcement Team (NCET). The move aligns with broader efforts by the administration to reduce the federal government’s role in financial crime enforcement and shift resources toward targeting transnational criminal networks, terrorism, narcotics trafficking, and human smuggling.
The NCET, launched in 2022, was created to address the growing threat of criminal misuse of digital assets. Comprised of attorneys with expertise in cryptocurrency, cybercrime, and money laundering, the unit coordinated with U.S. Attorneys’ offices, the FBI, and regulatory agencies to investigate and prosecute illicit use of virtual currencies. Its focus included targeting crypto exchanges and platforms that facilitated criminal activity and building partnerships with international law enforcement.
Blanche’s directive reflects the administration’s broader philosophy of reducing regulatory pressure on the digital asset industry. The memo cited President Trump’s Executive Order 14178, which emphasized the need for “clarity and certainty” in crypto-related policy to promote innovation and growth. The Justice Department, according to Blanche, will no longer engage in enforcement actions that effectively impose regulatory frameworks on the sector.
The DOJ's Market Integrity and Major Frauds Unit will also end its cryptocurrency enforcement efforts, redirecting attention to other priorities, such as immigration-related crimes and procurement fraud. However, the department's Computer Crime and Intellectual Property Section will continue to provide support and guidance on digital asset issues.
This policy shift comes as the Trump administration deepens its embrace of cryptocurrency. On his third day in office, Trump signed an executive order aimed at transforming the U.S. into the global leader in digital assets. He has since founded World Liberty Financial, launched a branded crypto token known as $TRUMP, and created a federal Strategic Bitcoin Reserve to bolster national crypto holdings.
The administration has established a Digital Asset Markets working group to craft new regulations and explore broader government adoption of crypto technologies. With Treasury Secretary Scott Bessent and A.I. and Crypto Czar David Sacks leading the charge, cryptocurrencies are expected to become more integrated into mainstream financial systems.
While the move to shutter the NCET may spark concern among advocates for stronger oversight in the crypto space, it underscores the Trump administration’s shift away from prosecutorial enforcement in favor of pro-growth, market-friendly policies in the digital currency sector.