US Justice Dept shuts down crypto enforcement unit following Trump order
The NCET unit was established in February 2022 to combat fraud and illicit finance, with cases such as the one against Binance and its founder Changpeng Zhao being a key focus.
- Apr 8, 2025,
- Updated Apr 8, 2025 8:18 PM IST
The US Justice Department has decided to disband its National Cryptocurrency Enforcement Team and direct prosecutors to focus on crypto investigations involving drug cartels and terrorist groups. A memo from Deputy Attorney General Todd Blanche criticised the previous administration for a perceived overreliance on prosecution as a means of regulation in the digital asset industry.
The NCET unit was established in February 2022 to combat fraud and illicit finance, with cases such as the one against Binance and its founder Changpeng Zhao being a key focus. However, there has been a shift in approach under President Donald Trump, who is associated with a family-owned crypto enterprise. The Republican promised to make the United States the "crypto capital of the planet".
Blanche stated that moving forward, the department will focus on prioritizing investigations concerning individuals who prey on digital asset investors or utilize digital assets in the commission of criminal activities such as terrorism, drug trafficking, human trafficking, organized crime, hacking, cartel financing, and gang funding. Any current investigations that do not align with this revised direction should be terminated, as per Blanche's written communication.
President Trump, who advocated for the industry during the 2024 campaign, has proposed relaxing regulations on cryptocurrencies. Since assuming office, regulatory agencies have swiftly begun scaling back government efforts to control the sector.
The Securities and Exchange Commission, the top regulator of U.S. markets, has redirected its focus on cryptocurrency enforcement and has either paused or abandoned high-profile cases that were previously perceived as successful. A U.S. banking regulator recently informed banks that they are permitted to engage in certain cryptocurrency activities.
In a memo issued on Monday, the Deputy Attorney General announced that the Justice Department will no longer target virtual currency exchanges, offline wallets, and services like mixers and tumblers that are designed to provide anonymity for crypto transactions, unless there is evidence of intentional misconduct by users or violations of regulations.
The US Justice Department has decided to disband its National Cryptocurrency Enforcement Team and direct prosecutors to focus on crypto investigations involving drug cartels and terrorist groups. A memo from Deputy Attorney General Todd Blanche criticised the previous administration for a perceived overreliance on prosecution as a means of regulation in the digital asset industry.
The NCET unit was established in February 2022 to combat fraud and illicit finance, with cases such as the one against Binance and its founder Changpeng Zhao being a key focus. However, there has been a shift in approach under President Donald Trump, who is associated with a family-owned crypto enterprise. The Republican promised to make the United States the "crypto capital of the planet".
Blanche stated that moving forward, the department will focus on prioritizing investigations concerning individuals who prey on digital asset investors or utilize digital assets in the commission of criminal activities such as terrorism, drug trafficking, human trafficking, organized crime, hacking, cartel financing, and gang funding. Any current investigations that do not align with this revised direction should be terminated, as per Blanche's written communication.
President Trump, who advocated for the industry during the 2024 campaign, has proposed relaxing regulations on cryptocurrencies. Since assuming office, regulatory agencies have swiftly begun scaling back government efforts to control the sector.
The Securities and Exchange Commission, the top regulator of U.S. markets, has redirected its focus on cryptocurrency enforcement and has either paused or abandoned high-profile cases that were previously perceived as successful. A U.S. banking regulator recently informed banks that they are permitted to engage in certain cryptocurrency activities.
In a memo issued on Monday, the Deputy Attorney General announced that the Justice Department will no longer target virtual currency exchanges, offline wallets, and services like mixers and tumblers that are designed to provide anonymity for crypto transactions, unless there is evidence of intentional misconduct by users or violations of regulations.