Top DOJ Official Shut Down Crypto Enforcement While Holding Significant Crypto Assets
An investigation by ProPublica reveals conflicts of interest and ethical concerns involving Todd Blanche, the Justice Department’s second-highest official
December 22, 2025 — Todd Blanche, the second-highest official at the U.S. Department of Justice (DOJ) and formerly President Donald Trump’s personal defense attorney during his New York criminal trial, took controversial actions related to cryptocurrency enforcement while holding substantial crypto investments, according to an investigative report published by ProPublica.
Crypto Investments and Ethics Agreements
Prior to his Senate confirmation in March, Blanche disclosed cryptocurrency holdings valued between $159,000 and $485,000, based on federal disclosure records. To address ethical concerns, he committed to divesting these assets within 90 days post-confirmation and agreed not to participate in any DOJ matters that could directly impact his financial interests in virtual currencies.
Despite these commitments, approximately one month into his tenure—before selling his digital assets—Blanche issued a significant internal memo halting ongoing investigations into cryptocurrency companies, dealers, and exchanges initiated during the previous Biden administration. Additionally, Blanche disbanded an enforcement team tasked with detecting crypto-related fraud and money laundering schemes. His memo also signaled DOJ support for a Trump administration crypto working group, made up of experts and Cabinet members, which proceeded to release recommendations aimed at positioning the United States as a global leader in digital currencies.
Alleged Violations of Federal Law and Ethics
Legal experts and former federal ethics officials interviewed by ProPublica contend Blanche’s approach violated federal conflicts of interest statutes as well as his own ethics agreement. Virginia Canter, a seasoned ethics lawyer who served under multiple presidents, underscored the issue: “If you are invested in that industry and now making a decision that could affect whether or not the DOJ is gonna pursue prosecutions, that’s an obvious conflict of interest.”
When Blanche eventually divested his holdings, records show he transferred them not outside his family but to his adult children and a grandchild. While legally permissible, this move has been criticized for contravening the spirit and intent of ethics regulations designed to prevent undue influence and conflicts.
Broader Crypto Regulatory Climate Under Trump Administration
Blanche’s case exemplifies a broader pattern within the Trump administration’s approach to cryptocurrency regulation. ProPublica’s review of federal financial disclosures found that since Trump’s return to the presidency, at least 216 political appointees owned cryptocurrency assets totaling between $175 million and $340 million—dramatically outpacing the comparatively modest crypto holdings of around two dozen Biden appointees worth less than $7 million.
Many of Trump’s crypto-friendly appointees hold leadership roles in agencies responsible for regulatory oversight of the sector. For instance, Commerce Secretary Howard Lutnick, formerly CEO of Cantor Fitzgerald—a firm heavily invested in cryptocurrency and the primary banker for Tether, one of the world’s largest stablecoin issuers—transferred his stake in the firm to his children following the signing of an ethics agreement. During this same period, Lutnick advanced policies such as advocating for a bitcoin strategic reserve and integrating blockchain economic data into Commerce Department reports, moves intended to foster trust and innovation in the digital asset market.
Similarly, Paul Atkins, chair of the Securities and Exchange Commission (SEC) since April under Trump, reportedly held up to $6 million in crypto-related investments at the time of his confirmation. The SEC under Atkins has notably dropped or settled enforcement actions against cryptocurrency companies. Though Atkins agreed to divest certain crypto assets, details about the timing and nature of the sales remain unclear, with agency representatives declining to provide specifics.
Crypto Advocacy and Political Implications
The Trump administration’s embrace of cryptocurrency coincides with the former president’s public pledge to transform the U.S. into “the crypto capital of the world.” During the 2024 election campaign, Trump promised to reverse the stricter crypto regulations implemented under President Joe Biden. The cryptocurrency industry invested millions in support of Trump and other Republican candidates, betting on a regulatory environment favorable to digital assets.
Following his 2024 election victory, Trump and his family launched their own cryptocurrency enterprise, World Liberty Financial, and issued meme coins, inviting supporters to engage with digital currency linked to the Trump brand. One of Trump’s initial acts as president was signing a presidential order promoting digital asset growth and nominating government officials aligned with his crypto-forward agenda.
Ethical Concerns and Expert Criticism
James Thurber, professor emeritus at American University and a former congressional staffer specializing in government ethics, criticized the Trump administration’s approach: “The administration’s disregard for traditional ethics protocols in the crypto space presents clear challenges to the integrity of government decision-making.”
When contacted for comment, a spokesperson for Todd Blanche and the DOJ declined to respond to the inquiries raised by ProPublica.
This story was originally published by ProPublica.