Outrage Mounts as Democratic Leaders Criticize DOJ for Disbanding Crypto Crime Team
Senators Slam DOJ’s Decision
The decision by the U.S. Department of Justice (DOJ) to dismantle its specialized crypto enforcement unit and scale back on prosecuting certain digital asset-related crimes has sparked a wave of criticism from Democratic lawmakers.
In a joint letter addressed to Deputy Attorney General Todd Blanche on April 10, Senate Democratic Whip Dick Durbin (D-IL), along with Senators Mazie Hirono (D-HI) and Elizabeth Warren (D-MA), among others, urged the DOJ to reverse its recent actions that effectively put an end to the Department’s cryptocurrency investigations and prosecutions. The lawmakers expressed deep concern over the disbandment of the National Cryptocurrency Enforcement Team (NCET), a unit established in 2021 to combat the misuse of digital currencies by criminals and sanctioned entities.
The senators characterized the DOJ’s policy shift as a major mistake. “We are writing in response to your memo dated April 7, 2025, in which you announced the termination of cryptocurrency investigations and the disbandment of the National Cryptocurrency Enforcement Team (NCET),” they stated, adding:
These decisions will only serve to facilitate sanctions evasion, drug trafficking, fraudulent activities, and exploitation of children.
They specifically criticized the DOJ’s stance on not pursuing cryptocurrency mixers and exchanges for the actions of their users, cautioning that this move could protect entities involved in laundering funds for hostile governments and criminal organizations. “It is illogical for the DOJ to adopt a hands-off approach towards tools that are aiding in such heinous crimes,” the lawmakers emphasized.
The letter also raised suspicions of potential conflicts of interest. The senators pointed to the ongoing digital asset dealings of President Donald Trump and his family as a possible factor influencing the DOJ’s shift in enforcement priorities. “Your decisions raise concerns that the President’s involvement in cryptocurrency transactions may be influencing the leniency towards law enforcement scrutiny,” the lawmakers asserted.
“We urge you to reconsider these decisions,” they concluded. The senators have requested a comprehensive briefing from DOJ officials by May 1 to clarify the reasoning behind the changes and their expected impact on federal crime prevention.