The National Cryptocurrency Enforcement Team was established in February 2022 under the Biden administration to address the criminal misuse of cryptocurrencies and digital assets. Comprised of attorneys from various DOJ divisions, including cybercrime and money laundering units, the NCET focused on investigating virtual currency exchanges, mixing and tumbling services, infrastructure providers, and individuals using these technologies to defraud the public (Criminal Division | National Cryptocurrency Enforcement Team | United States Department of Justice). Its efforts included high-profile cases, such as charging cryptocurrency fraud schemes involving over $2 billion in intended financial losses since 2019 (Criminal Division | Crypto Enforcement).
However, recent reports indicate a change in direction. On April 8, 2025, Deputy Attorney General Todd Blanche issued a memo, seen by Reuters, announcing the disbanding of NCET “effective immediately” (US Justice Dept disbands cryptocurrency enforcement unit | Reuters). This memo, also cited by Fortune and CryptoSlate, criticized the previous administration’s approach as a “reckless strategy of regulation by prosecution,” highlighting a shift away from broad regulatory enforcement (U.S. DOJ disbands the National Cryptocurrency Enforcement Unit: report).
Reasons for Disbanding and New Focus
The decision to disband NCET is part of the Trump administration’s efforts to loosen oversight on the crypto industry, aligning with broader federal agency recalibrations. Blanche’s memo emphasized that the DOJ is not a digital assets regulator and should not pursue industry-wide scrutiny (US DOJ disbands crypto enforcement team amid policy shift under Trump). Instead, the department will prioritize investigations into:
- Individuals who victimize digital asset investors, such as those running scams and fraud schemes.
- Those using digital assets in furtherance of criminal offenses, including terrorism, narcotics and human trafficking, organized crime, hacking, and cartel and gang financing.
This new focus is evident in the memo’s directive to close ongoing investigations inconsistent with this policy and to stop targeting virtual currency exchanges, mixing/tumbling services, and offline wallets for end-user acts or unwitting regulatory violations (U.S. Justice Department disbands cryptocurrency enforcement unit). Prosecutors are also ordered not to charge regulatory violations under federal banking, securities, and commodities laws without evidence of willful licensing or registration violations, citing one of Trump’s executive orders to ensure access to open blockchain networks without persecution.
| Date | Action | Focus Area | Impact on Crypto Industry |
|---|---|---|---|
| Feb 2022 | NCET Established | Crypto crime investigations | Increased scrutiny on exchanges, wallets |
| Jun 2022 | Charged 6 with crypto fraud | Fraud, market manipulation | Enhanced investor protection |
| Sep 2024 | Seized $6M in crypto scam proceeds | Scams targeting investors | Strengthened enforcement against fraud |
| Apr 2025 | NCET Disbanded, New Focus Announced | Scammers, criminal use of crypto | Reduced regulatory burden, targeted enforcement |
