Key Takeaways
- The DOJ has shut down the National Cryptocurrency Enforcement Team (NCET).
- Deputy Attorney General Todd Blanche says the DOJ will no longer target mixers or cold wallets unless tied to crimes.
- Under Trump, the DOJ is shifting focus to prosecuting individuals, not Bitcoin platforms.
The U.S. Department of Justice (DOJ) has officially shut down the National Cryptocurrency Enforcement Team (NCET), signaling a major shift in how the federal government approaches Bitcoin-related enforcement under President Donald Trump.
Background of the NCET
The NCET, formed in 2021 under the Biden administration, was tasked with investigating digital asset-related crimes, including money laundering and fraud.
The unit worked on major cases such as the Tornado Cash prosecution and the $100 million Mango Markets fraud by Avraham Eisenberg.
Criticism of previous strategies
In a four-page memo, Deputy Attorney General Todd Blanche — previously Trump’s defense attorney — criticized the DOJ’s prior role in digital asset regulation.
He wrote the DOJ…
… is not a digital assets regulator.
He also condemned the former administration’s…
… reckless strategy of regulation by prosecution.
New directives for federal prosecutors
Going forward, federal prosecutors are being directed to focus solely on individuals who use Bitcoin or other digital tools for serious crimes like terrorism, hacking, or drug trafficking.
The DOJ will no longer pursue platforms such as mixers or cold wallets unless there’s clear criminal involvement.
Blanche’s perspective
Blanche wrote:
The prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution, which was ill conceived and poorly executed.
Transfer of responsibilities
Blanche’s directive also transfers responsibility for digital asset-related cases to U.S. attorney’s offices, limiting the DOJ’s direct involvement to high-level criminal offenses.
Broader implications
The move reflects a broader shift under Trump, who has called for making the U.S. the…
… crypto capital of the world.
The SEC, under acting chair Mark T. Uyeda, is also reducing enforcement, reassigning key litigators like Jorge Tenreiro to non-enforcement roles.
