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- DOJ shuts down its crypto enforcement division.
- Focus shifts from crypto exchanges and mixers to targeting fraudsters.
- The move aligns with Trump’s push for relaxed crypto regulation.
The U.S. Department of Justice (DOJ) has ended its National Crypto Enforcement Team. Staff learned of the decision on Monday night. The move is part of a wider change in how the DOJ approaches crypto asset crimes.
The 2021-launched unit had examined significant cases of cryptocurrency-related crimes. These had encompassed fraud, money laundering, and malicious use of cryptocurrency mixers such as the ones offered by Tornado Cash. Cybercrime and financial crime prosecutors worked under the NCET umbrella. That chapter is now closed. DOJ is no longer positioning itself as a guardian of the crypto markets. Its officials say that it wants to end punishing platforms and rather pursue individual criminals.
DOJ Refocuses Crypto Enforcement
The new policy comes after a White House directive in January. The executive directive demanded less ambiguous rules for cryptocurrency. It also cautioned that the use of prosecution as a means of regulation is off-limits. This prompted a speedy review of all of the DOJ’s crypto-related initiatives. Deputy Attorney General Todd Blanche authorized the shutdown. His memo instructed staff to refrain from taking action against exchanges and offline wallets.
However, investigators will follow scams, frauds, and hacks on ordinary end-users. If a person commits fraudulent behavior by deceit, then the DOJ will pursue it. But if a platform hosts new technologies or tools for anonymity, it will not be a lawful target in itself.
Government Eases Cryptocurrency Regulations in 2025
The NCET disbandment also conforms to a larger trend. Since the beginning of 2025, the government has relaxed cryptocurrency regulation. Civil departments, in addition to the CFTC and the SEC, also received orders to scale back.
Meanwhile, the President also moved to support the potential of cryptography. He called for a federal Bitcoin reserve. Business leaders were called to the Capitol. They now speak in a powerful voice to inform policy.
The closing of the DOJ’s specialized cryptocurrency unit marks a new direction. It’s a move away from fear and caution toward open backing. Critics caution of danger, while supporters envision a chance for leadership in the global crypto sphere. It’s clear: the priority is punishing criminals, not innovation.
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