The US Department of Justice (DOJ) has dissolved its National Cryptocurrency Enforcement Team (NCET) as it continues to strip back federal oversight on the sector.
According to reports, the DOJ sent an internal memo on 7 April to all staff that the unit would be terminated and that all remaining cases would be sent to existing divisions within the department.
As with many controversial and bold decisions, this was driven by one of President Donald Trump’s key appointees, Deputy Attorney General Todd Blache. Previously, Blanche had described the NCET as “a reckless strategy”.
The NCET was founded in 2022 under President Joe Biden’s administration, with the aim of tackling an increasing number of criminal activities linked to cryptocurrencies. Its main focus was to conduct investigations into Bitcoin and crypto exchanges.
One notable example of its work is the case involving Ilya Lichtenstein and Heather Morgan, who were accused of conspiring to launder approximately $4.5bn stolen during the 2016 hack of the Bitfinex cryptocurrency exchange.
The crypto taskforce also worked in conjunction with the Securities and Exchange Commission (SEC) as it sought more aggressive oversight of the US crypto sector, leading to many lawsuits filed against the likes of Binance, Coinbase, Ripple Labs and more.
While perhaps viewed as one of the most significant changes under Trump, it comes as no surprise to many industry stakeholders.
Since his election, Trump has been on a mission to make the US the “crypto capital of the world”. In a bid to make this vision a reality, he has worked to loosen the regulatory hold that Biden placed on the sector. This has already led to several aforementioned lawsuits involving crypto firms being dropped earlier this year.
Additionally, this move aligns with his plans to streamline government spending and remove overbearing bureaucracy, which Trump believes is stifling economic growth.
It is currently unclear how this decision will affect ongoing investigations.
