Breaking: US DoJ Is Reportedly Scrapping Its Crypto Unit

On Apr 8, 2025 at 11:57 am UTC by · 3 mins read

According to a four-page memo by Deputy Attorney General Todd Blanche, the US DoJ is closing its crypto enforcement division, NCET.

In a major shake-up for the United States crypto enforcement policy, the Department of Justice (DOJ) has officially disbanded the National Cryptocurrency Enforcement Team (NCET).

The NCET was a specialized unit that once spearheaded high-profile cases against crypto mixers, hackers, and foreign cybercriminals.

Notably, the decision comes under a broader pivot by the Donald Trump administration to scale back regulatory oversight and position the US as a global crypto leader.

From Crackdowns to Clarity

In a four-page memo obtained by Fortune, Deputy Attorney General Todd Blanche, who also served as Donald Trump’s defense attorney during his 2024 criminal trial, announced that the DOJ is “not a digital assets regulator”.

Blanche framed the NCET’s dissolution as part of an effort to comply with Trump’s January executive order on digital assets, which emphasized the need to “establish regulatory clarity”.

Formed in 2021 under President Joe Biden, the NCET was tasked with tackling the DOJ’s most complex crypto-related investigations.

Its portfolio included landmark cases such as Tornado Cash, a crypto mixer accused of laundering funds tied to illicit actors, and the prosecution of Avraham Eisenberg, who exploited a crypto protocol for over $100 million.

The NCET also played an important role in identifying North Korean actors involved in laundering stolen digital assets.

The DOJ prosecutors have been instructed to focus on targeting individuals who defraud crypto asset investors, leaving exchanges, mixers, and wallet services outside the scope of criminal pursuit for now.

The Trump Doctrine: Pro-Crypto by Design

The NCET’s closure aligns with a larger push from the Trump administration to embrace the digital asset industry.

In recent months, Trump has actively courted crypto executives, signed a March executive order to create a strategic Bitcoin reserve, and declared his intent to make America the “Bitcoin superpower of the world”.

This pivot toward deregulation comes despite ongoing legal actions, including the recent penalty imposed on OKX, a crypto platform operated by Aux Cayes Fintech Co.

While the DOJ may be dialing back its focus on institutions, enforcement hasn’t come to a halt. On March 27, the agency announced the seizure of $201,400 in cryptocurrency allegedly linked to Hamas, a US-designated terrorist organization.

The crypto funds were traced to addresses involved in laundering over $1.5 million through OTC brokers and virtual exchanges since October 2024.

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