Trump Administration Disbands Cryptocurrency Fraud Investigation Unit
Washington, D.C. – April 8, 2025 – The U.S. Department of Justice (DoJ) has officially disbanded a specialized unit focused on investigating cryptocurrency fraud amid a broader shift towards less regulation in the digital assets sector under the Trump administration. This decision reflects an effort to streamline governmental oversight and promote the growth of the cryptocurrency industry, which former President Donald Trump has vigorously supported since taking office.
Implications of the Disbanding
In a memo circulated to department employees on Monday, Deputy Attorney General Todd Blanche announced that the National Cryptocurrency Enforcement Team (NCET) will cease operations immediately. The unit was initially established during the Biden administration to combat the misuse of cryptocurrencies in criminal activities. Blanche emphasized that the digital asset industry plays a crucial role in the nation’s economic innovation and development.
"The Department of Justice is not a digital assets regulator," said Blanche, referring to the prior administration’s approach to cryptocurrency regulation. He criticized the previous administration for employing a "reckless strategy of regulation by prosecution."
New Focus for Investigations
Under the new directive, DoJ’s investigations will pivot towards prosecuting individuals who specifically exploit digital assets to harm investors or engage in criminal activities such as terrorism, human trafficking, and organized crime. Blanche made it clear that the Department would no longer pursue enforcement actions that would impose regulatory restrictions on virtual currency exchanges or other infrastructure related to cryptocurrency.
The deputy attorney general’s memo further stated that ongoing investigations inconsistent with this new policy should be closed. This marked a significant policy shift that seeks to mitigate the punitive measures previously taken against the cryptocurrency sector.
Alignment with Presidential Executive Order
The dissolution of NCET aligns with an executive order signed by Trump early in his second term, which aims to ensure that citizens and private entities can access and utilize open public blockchain networks without fear of undue prosecution. This order not only identifies goals for promoting cryptocurrency use but also signals a strategic pivot towards enhancing America’s role in the global cryptocurrency landscape.
Historical Context and Future Outlook
Established under President Biden, NCET was formed to lead high-profile cases related to cryptocurrency misuse, gathering expertise from attorneys well-versed in cybercrime and money laundering. The unit’s disbanding comes at a time when Trump has expressed ambitions to position the United States as the "crypto capital of the planet," advocating for relaxed regulations while courting the support of cryptocurrency firms.
During his recent campaign efforts, Trump actively sought contributions from the crypto community and initiated plans for a new digital venture, World Liberty Financial, which reportedly claims a stake in 75% of the net revenues from its token sales. Further solidifying his commitment to cryptocurrency, Trump charted a course to create a national cryptocurrency reserve and engaged with crypto leaders in discussions at the White House.
As the administration moves forward with these policies, the implications for the cryptocurrency industry—both in terms of oversight and market expansion—remain significant, generating debate among industry stakeholders and analysts alike.
Conclusion
The disbanding of the NCET represents a decisive shift in U.S. policy regarding cryptocurrencies, as the Trump administration endeavors to facilitate growth within the sector while channeling law enforcement efforts toward more targeted actions against criminal exploitation. As this new approach unfolds, stakeholders will be keenly observing its impact on the evolving landscape of digital assets in America.
Share this article:
