In a major shift in the crypto industry, the US Department of Justice has decided to shut down the National Cryptocurrency Enforcement Task Force (NCET) in a significant departure from the previous administration’s policies.
Deputy Attorney General Todd Blanche has issued a new guidance memo to federal prosecutors on crypto industry missteps that focuses on serious crimes such as terrorism, drug dealing and human trafficking.
The Justice Department is now focusing on taking action against individuals who use digital assets for criminal purposes or who directly threaten the safety and interests of investors.
Blanche was recently confirmed as the number two official at the Justice Department, stating that any investigations that do not comply with this new policy should be closed.
This approach reflects the administration’s changing priorities, which are now less inclined to prosecute crypto companies for technical regulatory violations, and instead focus on individuals who misuse digital currencies for criminal purposes.
The National Cryptocurrency Enforcement Task Force (NCET) was established in 2022 under President Biden, with the aim of cracking down on crypto-related fraud and illicit financial activity.
Since its inception, the NCET has been involved in several high-profile investigations, including the case against crypto exchange Binance and its founder, Changpeng Zhao, who later pleaded guilty to money laundering violations.
However, Deputy Attorney General Todd Blanche, who was a criminal defense attorney for former President Donald Trump, criticized the previous administration’s approach as a reckless strategy.
His latest memo marks a significant shift from that approach.
Instead, he stressed that legal action should only be taken if there is strong evidence that an individual or company willfully violated licensing or registration rules.
