Fury erupts as Democratic leaders slam DOJ for dismantling its crypto crime team, warning it fuels laundering, evasion, and global threats.
Senators Rip DOJ’s Crypto Pullback
Democratic lawmakers have intensified pressure on the U.S. Department of Justice (DOJ), condemning its recent move to disband a specialized crypto enforcement unit and shift away from prosecuting certain digital asset-related crimes.
In a letter to Deputy Attorney General Todd Blanche on April 10, Senate Democratic Whip Dick Durbin (D-IL), joined by Senators Mazie Hirono (D-HI), Elizabeth Warren (D-MA), and others, called on the DOJ “to reverse the Department of Justice’s (DOJ) recent decisions to effectively terminate the Department’s cryptocurrency investigations and prosecutions.” The lawmakers expressed alarm over the dismantling of the National Cryptocurrency Enforcement Team (NCET), a unit formed in 2021 to tackle misuse of digital currencies by criminals and sanctioned actors.
The senators described the DOJ’s shift in policy as a serious misstep. “We write in response to your April 7, 2025 memo announcing your decision to give a free pass to cryptocurrency money launderers and to disband the DOJ’s National Cryptocurrency Enforcement Team (NCET),” they wrote, adding:
These are grave mistakes that will support sanctions evasion, drug trafficking, scams, and child sexual exploitation.
They specifically criticized the DOJ’s plan to refrain from targeting cryptocurrency mixers and exchanges for actions taken by end users, warning that this decision could shield entities complicit in laundering funds for hostile governments and organized crime networks. “It makes no sense for DOJ to announce a hands-off approach to tools that are being used to support such terrible crimes,” wrote the lawmakers.
The letter also voiced suspicion regarding potential conflicts of interest. The senators cited the ongoing involvement of President Donald Trump and his family in digital asset ventures as a possible influence on the DOJ’s shift in enforcement priorities. The lawmakers asserted:
Your decisions give rise to concerns that President Trump’s interest in selling his cryptocurrency may be the reason for easing law enforcement scrutiny.
“We urge you to reconsider these decisions,” they concluded. The senators have requested a detailed briefing from DOJ officials by May 1 to explain the rationale behind the changes and their projected impact on federal crime prevention.