By The Department of Justice has quietly retired its dedicated crypto enforcement team, in line with the Trump administration’s regulatory overhaul.
In a four-page memo, Deputy Attorney General Todd Blanche stated that the Department of Justice “is not a digital assets regulator,” criticizing what he described as the previous administration’s “reckless strategy of regulation by prosecution.”
Blanche, who now holds the DOJ’s second-highest post after serving as Donald Trump’s defence attorney in several high-profile cases, announced that the National Cryptocurrency Enforcement Team (NCET) was being disbanded “effective immediately.”
The move is part of broader efforts to implement Trump’s January executive order on digital assets, which called for “regulatory clarity” and a shift in how federal agencies approach the crypto industry.
According to the memo, DOJ prosecutors will now prioritise cases involving “individuals who victimise digital asset investors,” such as fraud, rather than pursue actions against infrastructure like exchanges, mixers, or self-custody wallets.
What is the National Cryptocurrency Enforcement Team?
Since its launch in 2021 under President Joe Biden, the NCET had become a central player in the government’s efforts to police crypto-related crime.
Backed by prosecutors from the DOJ’s cybercrime and money laundering units, the task force quickly built a track record of headline-making cases.
It played a leading role in the prosecution of Tornado Cash, the decentralised crypto mixer accused of helping North Korean hackers launder stolen funds.
NCET also helped bring charges against Avraham Eisenberg, the trader behind the $100 million exploit of Mango Markets.
Prosecutors argued Eisenberg manipulated the protocol’s price oracle to drain funds, while he claimed the move was a “legal trading strategy.”
The unit also contributed to cases involving Bitzlato, a Hong Kong-based exchange accused of laundering hundreds of millions for cybercriminals, and North Korean hackers using crypto to evade sanctions.
Most prominently, NCET supported the DOJ’s prosecution of FTX founder Sam Bankman-Fried and worked on investigations into Binance and its former CEO Changpeng Zhao.
At its peak, the unit served as the DOJ’s central crypto task force, coordinating closely with the SEC, CFTC, and other agencies.
In mid-2023, the Justice Department signalled its commitment to the unit by revamping its internal structure.
In July, senior DOJ official Nicole Argentieri announced that NCET would become a permanent part of the department’s Computer Crime and Intellectual Property Section.
At the time, Argentieri described the change as a step toward “bringing NCET to the next level,” positioning it alongside other major cybercrime initiatives.
Trump’s pro-crypto stance under fire
The closure of NCET is the latest in a string of crypto-friendly moves by the Trump administration.
Alongside ordering regulatory agencies like the SEC and CFTC to ease enforcement pressure on digital asset firms, Trump has doubled down on positioning the US as a global crypto hub.
In March, he signed an executive order authorising the creation of a national reserve of Bitcoin and other digital assets.
Days later, he hosted a summit in Washington, D.C., featuring leading crypto executives to discuss industry priorities and policy alignment.
“I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet,” Trump declared at the event. “And we’re taking historic action to deliver on that promise.”
However, the administration’s rapid embrace of crypto has triggered backlash from critics who see potential conflicts of interest.
Some have pointed to Trump’s direct involvement in projects like the Official Trump (TRUMP) memecoin, his family’s ties to the World Liberty Financial (WLFI) protocol, and plans for crypto-related ETFs under Trump Media.
Commenting on the shutdown, Tim Miller, a political commentator and former GOP strategist, called out the administration’s actions as unprecedented.
“The president is running a crypto scam where he can receive millions of dollars anonymously,” Miller said.
“Truly no corruption scheme like this in our history — at least out of the White House.”
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