Trump Dissolves DOJ Crypto Team, Critics Cry Foul
The Justice Department has shuttered its elite cryptocurrency crime-fighting unit, marking a dramatic shift in federal enforcement priorities that critics call a dangerous capitulation to industry interests.
The sudden disbanding of the National Cryptocurrency Enforcement Team (NCET) comes amid sweeping regulatory changes implemented by the Trump administration, which has positioned itself as strongly pro-cryptocurrency since taking office in January.
Terrorism Focus Replaces Broad Enforcement
Deputy Attorney General Todd Blanche announced the change in a memo sent to staff Monday night, directing prosecutors to narrow their focus to cases where digital assets are used for terrorism, narcotics trafficking, and human exploitation according to CNBC.
“The Department of Justice is not a digital assets regulator,” wrote Blanche, criticizing what he called the Biden administration’s “reckless strategy of regulation by prosecution.” The memo explicitly instructs prosecutors to halt investigations into crypto exchanges, mixing services, and offline wallets for user actions.
The now-disbanded NCET unit, formed in 2022, had played a central role in major prosecutions including the landmark $4.3 billion settlement with Binance and its founder Changpeng Zhao.
Industry Ties Raise Conflict Questions
The enforcement rollback comes as President Trump and his family have expanded their personal crypto business interests. The Trump family has launched multiple crypto ventures including World Liberty Financial, which has sold over $550 million in tokens, with 75% of profits flowing to Trump-linked entities, according to Reuters.
Critics point to these entanglements as potential conflicts of interest. “This is what corruption looks like,” wrote congressional candidate Melanie D’Arrigo on social media, noting that crypto industry players contributed at least $119 million to Trump’s campaign.
The crypto industry has celebrated the change as fulfilling Trump’s campaign promise to end what they viewed as regulatory overreach under the previous administration.
Broader Deregulation Pattern Emerges
The DOJ’s policy shift follows similar regulatory rollbacks at other agencies. The Securities and Exchange Commission has already paused or abandoned numerous crypto enforcement actions, including dropping its investigation into exchange giant Coinbase, The Washington Post reported.
These changes come despite continuing security concerns about the crypto market. The February 2025 ByBit heist, attributed to North Korea’s Lazarus Group, resulted in $1.5 billion stolen—the largest cryptocurrency theft in history—highlighting ongoing vulnerabilities in the sector.
Market Impact Remains Unclear
While the crypto industry has welcomed reduced regulatory scrutiny, digital asset markets have paradoxically tumbled in recent weeks. Bitcoin has fallen from its all-time high near $110,000 to around $78,000, with the broader crypto market losing over $1.2 trillion in value since December.
The Justice Department emphasized it will continue prosecuting cases of investor fraud and crimes facilitated through digital assets, but has effectively transferred broader regulatory responsibility to financial agencies operating outside the criminal justice system.
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