DOJ Shuts Down Crypto Crime Unit Under Trump’s Orders

The U.S. Department of Justice (DOJ) has officially closed its crypto enforcement team. The move comes as part of a wider shift in federal policy under President Donald Trump, who has promised a friendlier approach to digital assets.

Justice Department Ends Biden-Era Crypto Team

The National Cryptocurrency Enforcement Team (NCET) was created in 2021 under President Joe Biden. It brought together lawyers from the DOJ’s cybercrime and money laundering departments. The group’s responsibility was to crack down on crypto-related crime, including prosecuting high-profile cases.

One of those cases involved Avraham Eisenberg, who was found guilty of defrauding Mango Markets out of $100 million. Another major case focused on Tornado Cash, a crypto mixer the U.S. Treasury had previously sanctioned.

On Monday, Deputy Attorney General Todd Blanche sent out a four-page memo ordering the shutdown of NCET. Blanche, who also served as Trump’s defense lawyer during his 2024 legal trials, said the DOJ should not be used to regulate cryptocurrency markets. 

He criticized the previous administration’s use of the department, calling it a “reckless strategy.” Instead, he said, the DOJ should focus on stopping scammers and protecting everyday crypto users.

SEC Steps Back from Enforcement

Meanwhile, this is not the only agency rolling back on crypto-related enforcement. In February, the Securities and Exchange Commission started reducing its focus on its crypto division. 

Acting Chair Mark T. Uyeda led the changes, which included transferring Jorge Tenreiro, one of its leading crypto lawyers, to a department responsible for managing internal systems.

This change comes as part of Trump’s promise to turn the U.S. into a global leader in cryptocurrency. In March, he signed an executive order to start a Bitcoin reserve. He has also pushed federal regulators to write clear rules for the digital asset industry. Two stablecoin bills are already in the works and could be signed into law by June.

New Direction for Crypto Oversight

It is worth noting that the closure of NCET and the reshuffling at the SEC mark a major shift in Washington’s stance on crypto. 

The return of Trump to office has brought a change in priorities. Enforcement now takes a back seat to regulation. The focus is gradually moving toward investor safety and encouraging innovation within the digital economy.

In related news, Haliey Welch, known as the “Hawk Tuah Girl” from a viral internet video, is no longer under investigation by the United States Securities and Exchange Commission. The agency had been looking into HAWK, a crypto project based on her catchphrase.