- The National Cryptocurrency Enforcement Team (NCET) is no more
- NCET was created in 2021 and focused on crimes such as money laundering and cyberattacks
- Deputy Attorney General Todd Blanche ordered DOJ staff to focus on prosecuting those who defraud digital asset investors
The US Department of Justice (DOJ) has announced the dissolution of its National Cryptocurrency Enforcement Team (NCET), a specialized unit created to investigate and prosecute digital asset crimes.
This decision matches with the Trump administration’s broader initiative to streamline federal operations and reduce regulatory oversight in the financial sector.
NCET’s Formation and Notable Past Cases
Formed to address the rising challenges posed by the misuse of cryptocurrencies, the NCET focused on crimes such as money laundering and cyberattacks. It was created in 2021 under Joe Biden’s administration and it was part of the DOJ’s strategy to adapt to the evolving digital financial landscape and implement effective enforcement mechanisms.
Deputy Attorney General Todd Blanche, who was previously Trump’s defense lawyer, ordered DOJ staff to focus on prosecuting those who defraud digital asset investors. This seems to indicate a change from general regulation to targeting fraudsters.
In the past, NCET was involved in some of the DOJ’s biggest crypto cases. For instance, it helped catch Avraham Eisenberg, (accused of exploiting a trading protocol for $110 million) and the arrest of founders linked to Tornado Cash, a mixer allegedly used to launder over $1 billion.
Move Aligns with Admin’s Streamlining, Pro-Crypto Signals
The termination of the NCET reflects the current administration’s commitment to reducing what it perceives as excessive regulatory frameworks that may hinder innovation in the cryptocurrency space. By focusing on individual criminals rather than imposing overarching regulations, it looks like the DOJ aims to foster a more favorable environment for digital asset development.
The NCET disbandment appears to be on par with a series of organizational changes within the DOJ, such as reductions in force and reorganization proposals submitted to the Trump administration. In addition, this could be a part of yet another Trump pro-crypto policy, as the US President mentioned several times he wants the US to be the crypto capital of the world.
Not so long ago, he signed an executive order for the creation of the Bitcoin reserve, as well as hosted a crypto summit, where a lot of prominent crypto players were present.
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