DOJ Disbands Crypto Enforcement Unit, Prioritizes Organized Crime
14 April 2025 · Uncategorized ·
Source: · https://technews.tw/2025/04/09/ncet/
According to Reuters reports, the U.S. Department of Justice is dissolving its National Cryptocurrency Enforcement Team (NCET) and instructing prosecutors to narrow their cryptocurrency investigation scope. The focus will now be on criminal groups utilizing digital assets for illegal activities such as drug trafficking organizations and terrorist entities.
In a memo sent late Monday night, Deputy Attorney General Todd Blanche stated that the previous Biden administration employed an “overly aggressive” prosecution strategy toward the digital asset sector. Established in February 2022 to combat cryptocurrency fraud and illicit financing, the NCET oversaw several high-profile cases, including investigations into Binance and its founder Changpeng Zhao (CZ), who ultimately admitted violations of anti-money laundering laws.
Under President Trump’s leadership, there is a shift toward adjusting the government's stance on cryptocurrencies. The Trump family has publicly expressed support for the crypto industry; Donald Trump himself pledged to make America “the Crypto Capital” of Earth.
Blanche indicated that future investigations will prioritize individuals who defraud digital asset investors or use these assets in connection with terrorism, drug trafficking, human smuggling, organized crime, hacking attacks, cartel financing, and gang activities. He emphasized that any ongoing investigation inconsistent with this new policy should be discontinued.
Trump has strongly supported the cryptocurrency industry during his 2024 campaign by advocating for relaxed regulations on digital currencies. His family is also actively involved in crypto ventures; reports indicate they own a significant portion of World Liberty Financial’s token sales net income.
This Departmental shift mirrors actions taken by other regulatory bodies: The SEC (Securities and Exchange Commission) has realigned its cryptocurrency enforcement team, suspending or abandoning several high-profile cases. Last month, U.S. banking regulators also eased restrictions on banks engaging in crypto activities.
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In a memo sent late Monday night, Deputy Attorney General Todd Blanche stated that the previous Biden administration employed an “overly aggressive” prosecution strategy toward the digital asset sector. Established in February 2022 to combat cryptocurrency fraud and illicit financing, the NCET oversaw several high-profile cases, including investigations into Binance and its founder Changpeng Zhao (CZ), who ultimately admitted violations of anti-money laundering laws.
Under President Trump’s leadership, there is a shift toward adjusting the government's stance on cryptocurrencies. The Trump family has publicly expressed support for the crypto industry; Donald Trump himself pledged to make America “the Crypto Capital” of Earth.
Blanche indicated that future investigations will prioritize individuals who defraud digital asset investors or use these assets in connection with terrorism, drug trafficking, human smuggling, organized crime, hacking attacks, cartel financing, and gang activities. He emphasized that any ongoing investigation inconsistent with this new policy should be discontinued.
Trump has strongly supported the cryptocurrency industry during his 2024 campaign by advocating for relaxed regulations on digital currencies. His family is also actively involved in crypto ventures; reports indicate they own a significant portion of World Liberty Financial’s token sales net income.
This Departmental shift mirrors actions taken by other regulatory bodies: The SEC (Securities and Exchange Commission) has realigned its cryptocurrency enforcement team, suspending or abandoning several high-profile cases. Last month, U.S. banking regulators also eased restrictions on banks engaging in crypto activities.
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