DOJ Disbands Cryptocurrency Enforcement Unit, Refocuses on Terrorism and Financial Crimes
Estimated Reading Time: 2 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
The U.S. Department of Justice has officially dissolved its National Cryptocurrency Enforcement Team (NCET), marking a significant change in how the federal government plans to tackle crypto-related offenses. This shift was revealed in a memo issued Monday night by Deputy Attorney General Todd Blanche.
Blanche outlined a new, decentralized strategy that delegates responsibility for handling digital asset cases to individual U.S. attorney’s offices. These offices will now concentrate their efforts on crimes involving terrorism and fraud, particularly when digital assets are used as tools to facilitate such activities.
According to the memo, future enforcement will prioritize “prosecuting those who exploit digital asset investors or use cryptocurrencies to support illicit acts such as terrorism, drug and human trafficking, cybercrime, organized crime, and gang or cartel financing.”
This move comes amid a broader regulatory pivot under President Donald Trump’s administration, which has been rolling back aggressive crypto oversight as part of its pro-crypto policy platform introduced during the 2024 campaign.
Formed in 2022 during President Joe Biden’s administration, the National Cryptocurrency Enforcement Team was created to combat the unlawful use of digital currencies. The team became instrumental in several major investigations, most notably its probe into Binance and its founder, Changpeng Zhao, who admitted in 2023 to breaching U.S. anti-money laundering regulations, culminating in a $4.3 billion settlement.
A recent memo has directed prosecutors to halt any ongoing investigations that no longer reflect the department’s updated objectives. In a significant policy shift, the Department of Justice has clarified it will no longer target cryptocurrency exchanges, mixing and tumbling services, or offline wallets for user conduct or accidental regulatory breaches. Prosecutors have also been advised against filing charges for financial law violations—such as operating without a money transmission license or offering unregistered securities—unless there is clear evidence the individual knowingly and deliberately violated the law.
