U.S. Shuts Down Crypto Crime Unit as Trump Shifts Focus to Investor Fraud
The U.S. government is pulling back from its aggressive stance on crypto enforcement, as the Department of Justice officially shuts down its specialized cryptocurrency crime unit.
The decision reflects a broader shift under President Donald Trump’s leadership, aimed at easing federal intervention in the digital asset space.
Assistant U.S. Attorney Todd Blanche confirmed the closure of the National Cryptocurrency Enforcement Team (NCET) in a recent memo. The four-page directive framed the move as an attempt to bring more predictability and less regulatory pressure to the crypto industry.
Blanche, who also represented Trump during his legal proceedings in 2024, criticized the prior administration’s strategy of policing crypto through criminal prosecutions. He emphasized that the DOJ should not function as a regulatory agency for digital assets.
Going forward, the department will move away from targeting crypto infrastructure like exchanges and mixing tools, shifting its attention instead to individuals who defraud or harm investors directly.
NCET had been active since its launch in 2021 and led several high-profile investigations. Among its most notable actions were the cases against Tornado Cash, a crypto mixer accused of enabling illicit activity; Avraham Eisenberg, who allegedly manipulated DeFi protocols to extract over $100 million; and North Korean operatives tied to laundering stolen digital assets.
The unit’s closure signals a major pivot in how the federal government intends to deal with crypto-related crime—favoring a more targeted approach over sweeping crackdowns on platforms and protocols.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
