DOJ Ditches Crypto Unit, Blames Biden for ‘Regulation by Prosecution’ Fiasco

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Well, it looks like the U.S. Department of Justice (DOJ) has decided to call it quits on its so-called “National Cryptocurrency Enforcement Unit” (NCET), a grand title that sounds like something you’d find in a bad spy movie. Apparently, this unit, created during the Biden Administration, was supposed to be the crypto sheriff of the Wild West. Instead, it’s now being dismantled faster than a blockchain transaction on a Friday night.

In a memo released on Monday (because, of course, it’s Monday—who doesn’t love a fresh dose of government drama on a Monday?), Deputy Attorney General Todd Blanche announced that the DOJ would be putting an end to this ambitious little crypto experiment. The reason? Well, it turns out that President Trump—yes, that one—has a new executive order that basically says, “Let’s stop using the DOJ as the digital asset police, alright?”

“The Department of Justice is not a digital assets regulator,” Blanche wrote in his memo, probably rolling his eyes so hard they almost got stuck. “However, the prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution, which was ill-conceived and poorly executed.” Ouch. Talk about throwing some shade. It seems like the previous efforts were about as effective as a crypto miner trying to get rich off dial-up internet.

The DOJ’s memo goes on to assure us that they’re no longer going to “superimpose” regulatory frameworks on digital assets. Instead, President Trump’s “actual” regulators will take over this mess outside of the criminal justice system. In other words, the DOJ is washing its hands of the whole digital asset saga. It’s like they handed the torch to someone else and said, “You deal with this nightmare, we’ve got actual crime to investigate.”

For those who like a bit of history with their scandals, NCET was created in 2021, presumably with the idea that someone, somewhere, needed to make sure crypto wasn’t just a fun way to lose money on the internet. The unit was made up of prosecutors from the DOJ’s money laundering and cybercrime departments, plus a few extra hands from district offices, all working together like a group project where nobody wanted to do the work. The NCET took part in some of the DOJ’s most high-profile crypto cases, including Tornado Cash, which, if you’re not up to date on the latest crypto shenanigans, is a crypto mixer designed to make transactions disappear into thin air like your ex’s excuses.

But the DOJ is no longer chasing after every crypto criminal in sight. Instead, Blanche’s memo makes it clear that the DOJ will now focus on more important matters, like prosecuting “individuals who victimize digital asset investors” (because, apparently, those people are still getting scammed) and going after the folks who use digital assets for all sorts of nefarious activities like terrorism, narcotics, human trafficking, and cartel financing. You know, the usual criminal stuff. No big deal, right?

So, to sum up: the NCET is out of a job, Trump’s team gets to handle the crypto regulation thingy, and the DOJ will stick to investigating more traditional forms of crime, like people robbing banks or hacking into your grandma’s email. Everyone’s a winner… except the NCET. Oops.

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2025-04-08 21:42