The US Department of Justice on Monday announced that it is officially disbanding its crypto crime unit, which was dedicated to crypto-related investigations, reported Forbes.
U.S. Deputy Attorney General Todd Blanche made the announcement stating “The Department of Justice is not a digital assets regulator. However, the prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution.”
Blanche, a top official at the Justice Department and Trump’s former lawyer, said that they’re shutting down the crypto crime unit, NCET (National Cryptocurrency Enforcement Unit) right away as part of Trump’s executive order on digital assets to make crypto rules clearer and less strict. Basically, the government is stepping back from cracking down on crypto and trying to be more supportive of the industry.
Established in 2021 under President Joe Biden, NCET was a joint task force composed of prosecutors from the DOJ’s money laundering and cybercrime units as well as attorneys from other district offices.
The NCET, established in 2021 under former Presdient Joe Biden, was a special DOJ task force made up of experts in money laundering, cybercrime, and crypto law.
The task force played a key role in several of DOJ’s biggest crypto cases. It dealt with cases like Tornado Cash, a crypto mixer used to hide the origins of digital funds, and Avraham Eisenberg, a hacker who exploited a trading platform to steal over $100 million. The unit also led probes into North Korean cybercriminals involved in laundering money from crypto hacks. These high-profile cases highlighted the task force’s efforts to crack down on illegal activities in the digital asset space.
The memo from Blanche instructed the DOJ staff to prioritize prosecuting people who scam or cheat crypto investors and shift their focus away from cracking down on crypto platforms like exchanges, mixers and offline wallets.
The shutdown of the DOJ’s crypto enforcement unit marks the Trump administration’s latest step in easing crypto regulations. Earlier, Trump had already instructed agencies like the SEC and CFTC to relax their oversight of digital assets.
