The Department of Justice just axed its National Cryptocurrency Enforcement Team, and people are fuming. Senator Elizabeth Warren, leading the charge, slams this as a free pass for crypto crooks—basically inviting money launderers to the party. Critics say it’s a reckless move, gutting expertise and risking more crime, especially with terrorism and drug trafficking ties still a threat. Heck, even Trump family crypto ventures are raising eyebrows. Stick around for the full mess.
Well, folks, buckle up for some jaw-dropping news. The Department of Justice just dropped a bombshell, disbanding the National Cryptocurrency Enforcement Team (NCET) as of April 7, 2025. Yeah, you heard that right. A memo from Deputy Attorney General Todd Blanche laid out this wild shift in strategy, even ordering the Market Integrity and Major Frauds Unit to stop crypto enforcement. Only the Computer Crime and Intellectual Property Section gets to keep a training and liaison role. Talk about pulling the rug out.
This isn’t just a tweak—it’s a full-on pivot. The DOJ claims it’s not a “digital assets regulator,” slamming the prior administration’s approach as a “reckless strategy of regulation by prosecution.” Ouch. Aligning with President Trump’s Executive Order 14178 and a pro-crypto agenda, they’re aiming for clarity in the industry. No more targeting platforms for user actions or “unwitting” violations. Instead, the focus is on crooks directly harming investors—think fraud, scams, hacks, rug pulls. This move signals a significant departure from previous efforts to broadly police the digital asset sector under NCET‘s mandate.
This isn’t a minor change—it’s a total pivot. The DOJ slams past “reckless” crypto regulation, now focusing on real crooks harming investors.
Oh, and crypto tied to terrorism, drug trafficking, or cartels? That’s still on the hit list. U.S. Attorneys’ Offices will lead with existing tools, while cases like unlicensed money transmission or Bank Secrecy Act flops get deprioritized unless willful. Ongoing probes that don’t fit? Closed. Done. Additionally, Democratic senators have raised alarms over potential conflicts of interest tied to the Trump family’s cryptocurrency ventures.
Now, let’s rewind. The NCET, formed under Biden in 2021/2022, was a powerhouse of prosecutors tackling illicit crypto use. Big wins like the Binance $4.3 billion settlement and Tornado Cash cases? That was them. They supported state and local agencies, racked up convictions, seized assets. And now? Poof. Gone. Critics are losing it, and honestly, who can blame them?
Enter Senator Elizabeth Warren and six other Senate Democrats, firing off a scathing letter on April 10, 2025. They called this a “grave mistake,” downright “nonsensical,” accusing the DOJ of handing a “free pass” to crypto money launderers. They’re demanding a staff briefing by May 1, 2025, to explain this mess.
Their worries? Weakened enforcement on sanctions evasion, drug trafficking, scams, child exploitation. Complex cases involving mixers like Tornado Cash? Good luck now. They’re screaming systemic vulnerability, exploitable by criminals and adversaries. Heck, some even whisper about Trump family crypto ventures influencing this. Shady much?
The fallout could be ugly. More crypto crime? Probably. Loss of specialized expertise? Definitely. This isn’t just a policy shift—it’s a gamble. And the stakes? Sky-high. What a time to be watching this unfold. Unbelievable.
