DOJ Dismantles Crypto Crime Unit, Refocuses on National Security Threats

DOJ has officially disbanded its National Cryptocurrency Enforcement Team, marking a major shift in how the federal government handles digital asset crimes. In a memo sent Monday night by Deputy Attorney General Todd Blanche, the department announced that U.S. attorney’s offices will now take the lead on crypto-related cases, with a primary focus on terrorism, investor fraud, and organized crime.

Trump’s Deregulatory Push Reaches DOJ

The now-defunct unit, created in 2022 under President Joe Biden, had played a central role in prosecuting high-profile cases—including the $4.3 billion settlement with Binance and its founder, Changpeng Zhao. Its dissolution follows President Donald Trump’s broader deregulatory campaign, aimed at easing restrictions on the crypto sector and fostering innovation.

Prosecutors have been instructed to end ongoing investigations that no longer align with the department’s updated focus. According to the memo, enforcement will now concentrate on criminal activities where digital assets are used to fund terrorism, narcotics operations, human trafficking, or major cybercrimes.

No More Blanket Enforcement for Exchanges and Wallets

The memo clearly states that the DOJ will no longer pursue enforcement against crypto exchanges, wallet providers, or mixing services for the actions of their users—unless intent to violate the law can be demonstrated. Charges such as unlicensed money transmission or unregistered securities offerings must meet a higher standard: proof of willful misconduct.

This approach aligns with Trump’s executive order promoting open blockchain access and reducing regulatory burdens. Trump and his family have also become active in the crypto space, launching ventures like the upcoming decentralized digital bank, World Liberty Financial, which has raised $550 million and channels 75% of profits to Trump-linked entities. Meme coins tied to both Donald and Melania Trump have added to their digital asset footprint.

Digital Asset Oversight Reassigned

While the DOJ’s Market Integrity and Major Frauds Unit will cease crypto enforcement efforts, the department’s Computer Crime and Intellectual Property Section will remain active, providing guidance and training, and serving as a liaison to the crypto industry.

The memo also criticized the previous administration’s use of criminal enforcement as a substitute for regulation. “Litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets” will no longer be pursued, leaving oversight to financial regulators.

Despite the policy shift, the crypto market has struggled. Bitcoin is trading around $78,000—down from its near $110,000 high—with over $1.2 trillion in market cap lost since December.

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