The US Department of Justice (DOJ) has announced the disbanding of its specialized crypto crime unit, the National Cryptocurrency Enforcement Team (NCET).
Established in 2021, the unit had served as a central authority for prosecuting crimes involving digital assets. The decision to dissolve it is part of a broader strategic shift under the Trump administration.
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Background of the decision
According to Todd Blanche, Deputy Attorney General and close associate of Donald Trump, it is not the DOJ’s role to act as a regulatory body for the crypto sector. This is outlined in a memo cited by Reuters. Instead, the department will now focus more specifically on prosecuting actual instances of fraud. Platforms such as exchanges, wallet providers, or DeFi projects will no longer be treated with general suspicion, provided they comply with the law.
Blanche also emphasized that the previous practice of “regulation by enforcement” was a relic of the prior administration and had stifled investment and innovation in the industry. Going forward, the department will prioritize investigations into “individuals who defraud investors in digital assets, or those who use digital assets to commit crimes such as terrorism, drug and human trafficking, organized crime, hacking, and cartel or gang financing.”
Successes and dissolution of the NCET
The NCET played a leading role in several high-profile investigations, including actions against the crypto mixer Tornado Cash, the indictment of Avraham Eisenberg for a USD 100 million exploit, and the pursuit of North Korean hacker groups. Despite its short lifespan, the NCET set important benchmarks-making its dissolution a surprising move. The unit’s investigators will now be reassigned to other DOJ divisions, where they will continue working on cryptocurrency-related cases.
Since returning to office, the Trump administration has adopted a more pro-business approach to the crypto industry. In addition to dissolving the NCET, it has also reduced the authority of the SEC and CFTC in the crypto space. The goal is to reestablish US leadership in blockchain innovation. The new focus is clearly on combating fraud-not on broadly monitoring the crypto market.
