DOJ shutters crypto crime fighting division, calls unit a 'reckless strategy' from Biden's admin: Fortune
Quick Take The U.S. Department of Justice closed its crypto enforcement task force to align with President Donald Trump’s relaxed approach to digital asset regulation. Dubbed the National Cryptocurrency Enforcement Unit (NCET), the office was involved in cases like Tornado Cash and Avraham Eisenberg’s $100 million Mango Markets exploit.
Todd Blanche, U.S. Deputy Attorney General and Trump’s defense lawyer in 2024, issued a memo directing the immediate shutdown of the DOJ’s crypto litigation division as authorities adopt a friendlier roadmap for digital asset oversight, according to Fortune on Tuesday.
The four-page notice issued Monday stressed that crypto regulation was outside the DOJ’s remit. Blanche wrote that the previous government under former President Joe Biden leveraged the Justice Department in a “reckless strategy” to police the blockchain industry via enforcement action. The Deputy AG told staffers to instead prioritize investigating individual bad actors and criminals targeting crypto investors.
Biden’s administration formed NCET in 2021 as a collaborative legal strike team, comprised of U.S. Attorneys from the DOJ's cybercrime and money laundering offices. NCET’s department worked on several landmark cases like crypto mixer Tornado Cash and the $100 million Mango Markets exploit executed by Avraham Eisenberg. Eisenberg was convicted on fraud charges last year, while the U.S. Treasury lifted sanctions on Tornado Cash following a court ruling.
Blanche’s directive comes as federal agencies change courses on cryptocurrency regulation. In February, the Securities and Exchange Commission — under acting chair Mark T. Uyeda — announced plans to scale down the watchdog’s special crypto enforcement unit . Jorge Tenreiro, the SEC’s top digital asset litigator, was reassigned to a department tasked with maintaining computer systems as part of the overhaul.
The move signalled a new tune within agencies as Trump’s return as the first pro-crypto President promised more flexible oversight. During his campaign trail, the Republican leader vowed to position the U.S. as a global crypto capital. In March, Trump signed an executive order to establish a Bitcoin reserve and previously instructed all relevant regulators to develop clear digital asset market rules. Two stablecoin bills have advanced from that effort. Many expect one of those bills to hit Trump’s table in the White House by the end of June, although the drafts will likely face several markups in the coming weeks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
If Jensen Huang resigns, who could take over Nvidia? AMD's Lisa Su included in media candidates
AMD CEO Lisa Su, who holds a Ph.D. from MIT and led AMD back to growth while rebuilding customer trust during a crisis, is seen as a potential candidate. However, the competitive relationship between AMD and NVIDIA adds complexity to the succession process. Arm CEO Rene Haas, who worked at NVIDIA for seven years, is considered a smoother option for succession.
SoftBank reports first quarterly loss in two years! $3.7 billion impairment in US data center project, AI investments face pressure
SoftBank Group reported a net loss of 1.12 trillion yen in its second fiscal quarter, marking its first quarterly loss in nearly two years. The main reasons are the write-off of nearly $3.7 billion in advance payments due to adjustments in the procurement of power supply equipment for its AI data center in Ohio, USA, a shift of the Vision Fund from profit to loss, and a surge in the cost of high-debt financing. Since the June peak, SoftBank's share price has fallen more than 50%.
Expanding computing power on one hand, grabbing spectrum on the other! Barclays optimistic about SpaceX (SPCX.US) acquiring T-Mobile: Complementary advantages of ground networks and Starlink
After Space's stock price rose for two consecutive days, Barclays stated that T-Mobile is the "cleanest" choice among SpaceX’s potential acquisition targets. Barclays considers Verizon a major unknown, while AT&T has the lowest strategic fit.
Will the Federal Reserve raise rates in December? Tonight's CPI will be the final verdict!
The October CPI data will be released tonight, with the market pricing in an 86% chance of a rate hike. Goldman Sachs predicts a core CPI month-on-month increase of only 0.16%, much lower than market expectations. However, statistical distortions in health insurance and declines in used car prices—these "soft factors"—are unlikely to be reflected in the core PCE, which the Federal Reserve places greater emphasis on. The data may trigger a relief rally, but it is unlikely to change the underlying hawkish sentiment.
Crypto prices
More
