DOJ Crypto Unit Axed: Market Impact & Investor Risks | 2025
2025-04-09 08:40:33DOJ Abruptly Disbands Crypto Enforcement Team in Major Policy Shift Under Trump
A Sudden End to Biden-Era Crypto Crackdowns
The U.S. Department of Justice (DOJ) has abruptly shut down its National Cryptocurrency Enforcement Team (NCET), signaling a dramatic shift in federal oversight of digital assets under the Trump administration. The move, announced in a memo from Deputy Attorney General Todd Blanche, effectively dismantles a key unit responsible for high-profile crypto prosecutions, including cases against Binance, Tornado Cash developers, and market manipulators.
The decision aligns with President Donald Trump’s pro-crypto agenda, which has rolled back regulatory enforcement since his re-election. Blanche stated that the DOJ "is not a digital assets regulator" and criticized the Biden administration’s approach as "regulation by prosecution".
From Aggressive Enforcement to a Hands-Off Approach
The NCET, established in 2022 under Biden, was tasked with combating crypto-related crimes, including money laundering, fraud, and sanctions evasion. It played a central role in cases like:
The $4.3 billion settlement with Binance for anti-money laundering violations.
The prosecution of Avraham Eisenberg, convicted of a $110 million market manipulation scheme.
The ongoing case against Tornado Cash developer Roman Storm, accused of aiding North Korean hackers.
Now, the DOJ will only pursue cases where crypto is used for terrorism financing, drug trafficking, or direct fraud against investors, while dropping actions against exchanges, mixers, and wallet providers for "unwitting violations".
Trump’s Pro-Crypto Agenda Gains Momentum
This policy reversal follows Trump’s March 2025 executive order promoting blockchain innovation and his pledge to make the U.S. the "crypto capital of the world". Key developments include:
The SEC dropping multiple enforcement cases against crypto firms.
The launch of Trump-linked crypto ventures, including World Liberty Financial, a stablecoin project where the Trump family claims 75% of profits.
The disbanding of the Market Integrity and Major Frauds Unit’s crypto enforcement, redirecting resources to immigration and procurement fraud.
Market Reactions and Industry Responses
While crypto advocates like Coin Center’s Peter Van Valkenburgh praised the move as a win for "good tools that bad guys happen to use", critics warn it could embolden illicit actors.
Yesha Yadav, a Vanderbilt law professor, cautioned that without NCET, intelligence on crypto crimes may become "more diffuse," making it harder to track "nimble, opportunistic" criminals.
Meanwhile, Bitcoin’s price remains volatile, trading at $78,000, down from its $110,000 peak in late 2024.
What’s Next for Crypto Regulation?
The DOJ’s retreat leaves financial regulators like the SEC and CFTC to handle crypto oversight—but with lighter enforcement under Trump. Analysts expect:
More leniency for exchanges and DeFi projects.
Continued focus on terrorism-linked crypto transactions.
Potential legislative moves to formalize crypto-friendly policies.
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Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.