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DOJ ends crypto enforcement team, shifts focus to terrorism and fraud [1]

['Mackenzie Sigalos']

Date: 2025-04-08

The U.S. Justice Department abruptly shut down its National Cryptocurrency Enforcement Team, signaling a major shift in how the federal government will handle crypto-related crimes going forward, according to a memo sent Monday night by Deputy Attorney General Todd Blanche.

In it, Blanche outlines a decentralized approach in which U.S. attorney's offices will now take the lead on digital asset cases, focusing primarily on crimes involving terrorism.

Going forward, the document said efforts would now focus on "prosecuting individuals who victimize digital asset investors, or those who use digital assets in furtherance of criminal offenses such as terrorism, narcotics and human trafficking, organized crime, hacking, and cartel and gang financing."

The disbandment of the unit is the latest in a series of sweeping regulatory reversals under President Donald Trump, who made crypto-friendly policies a centerpiece of his 2024 campaign.

Established in 2022 under former President Joe Biden, the National Cryptocurrency Enforcement Team was tasked with addressing the illicit use of cryptocurrencies.

The unit played a central role in high-profile cases, including the investigation into Binance and its founder, Changpeng Zhao, who pleaded guilty in 2023 to violating U.S. anti-money laundering laws, resulting in a $4.3 billion settlement.​

Prosecutors have been instructed to close ongoing investigations that do not align with the new priorities, according to the memo.

The DOJ also explicitly states it will not pursue enforcement against crypto exchanges, mixing and tumbling services, or offline wallets for the actions of their users or "unwitting violations of regulations" — marking a major departure from prior policy. Prosecutors are instructed not to charge violations of financial laws, such as unlicensed money transmission and unregistered securities offerings unless they can prove the defendant knew of the rules and willfully broke them.

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[1] Url: https://www.cnbc.com/2025/04/08/doj-ends-crypto-enforcement-team-shifts-focus-to-terrorism-and-fraud.html

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