Key Notes
- The DOJ has disbanded its crypto enforcement unit NCET, aligning with Trump’s push for pro-crypto policies.
- OKX and KuCoin face penalties amid a narrowing focus on investor protection over institutional prosecution.
- The NCET was formed under the Biden administration with the goal of targeting complex crypto cases.
In a major shake-up for the United States crypto enforcement policy, the Department of Justice (DOJ) has officially disbanded the National Cryptocurrency Enforcement Team (NCET).
The NCET was a specialized unit that once spearheaded high-profile cases against crypto mixers, hackers, and foreign cybercriminals.
Notably, the decision comes under a broader pivot by the Donald Trump administration to scale back regulatory oversight and position the US as a global crypto leader.
JUST IN: 🇺🇸 The U.S. Department of Justice scraps crypto unit as President Trump further loosens oversight of digital assets: Fortune. pic.twitter.com/l4skUXkn6A
— Whale Insider (@WhaleInsider) April 8, 2025
From Crackdowns to Clarity
In a four-page memo obtained by Fortune, Deputy Attorney General Todd Blanche, who also served as Donald Trump’s defense attorney during his 2024 criminal trial, announced that the DOJ is “not a digital assets regulator”.
Blanche framed the NCET’s dissolution as part of an effort to comply with Trump’s January executive order on digital assets, which emphasized the need to “establish regulatory clarity”.
Formed in 2021 under President Joe Biden, the NCET was tasked with tackling the DOJ’s most complex crypto-related investigations.
Its portfolio included landmark cases such as Tornado Cash, a crypto mixer accused of laundering funds tied to illicit actors, and the prosecution of Avraham Eisenberg, who exploited a crypto protocol for over $100 million.
The NCET also played an important role in identifying North Korean actors involved in laundering stolen digital assets.
The DOJ prosecutors have been instructed to focus on targeting individuals who defraud crypto asset investors, leaving exchanges, mixers, and wallet services outside the scope of criminal pursuit for now.
The Trump Doctrine: Pro-Crypto by Design
The NCET’s closure aligns with a larger push from the Trump administration to embrace the digital asset industry.
In recent months, Trump has actively courted crypto executives, signed a March executive order to create a strategic Bitcoin reserve, and declared his intent to make America the “Bitcoin superpower of the world”.
This pivot toward deregulation comes despite ongoing legal actions, including the recent penalty imposed on OKX, a crypto platform operated by Aux Cayes Fintech Co.
While the DOJ may be dialing back its focus on institutions, enforcement hasn’t come to a halt. On March 27, the agency announced the seizure of $201,400 in cryptocurrency allegedly linked to Hamas, a US-designated terrorist organization.
The crypto funds were traced to addresses involved in laundering over $1.5 million through OTC brokers and virtual exchanges since October 2024.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
