On April 8, 2025, the U.S. Justice Department (DOJ) made headlines by shutting down its National Cryptocurrency Enforcement Team (NCET), a unit once responsible for overseeing federal investigations and prosecutions related to digital assets. The announcement triggered reactions across the financial and legal sectors, raising questions about how the United States plans to regulate and police an industry now deeply embedded in global finance.
Rather than retreating from crypto regulation, the DOJ signaled a strategic pivot. Officials stated they will reallocate resources to more targeted investigations that involve cryptocurrency-linked crimes, such as terrorism financing, narcotics trafficking, money laundering, and organized crime. This decision marks a significant evolution in the DOJ’s approach—one that shifts focus from policing the digital asset sector broadly to targeting specific criminal use cases.
Background: What Was the NCET?
Established in October 2021 under the Biden administration, the National Cryptocurrency Enforcement Team combined experts from the DOJ’s Criminal Division, Cybercrime Units, and Money Laundering divisions. The unit aimed to create a specialized force with a deep understanding of blockchain technology and digital finance.
The NCET took on landmark cases involving crypto fraud, exchange hacks, and ransomware groups. It successfully prosecuted operators behind BitConnect, dismantled a global crypto laundering network tied to North Korea, and brought charges against rogue exchanges facilitating illicit transactions.
Over the past three years, the unit served as a visible arm of U.S. crypto enforcement, coordinating with the SEC, CFTC, and international partners. However, critics argued that the team stretched itself thin by trying to monitor an ever-expanding industry that outpaced regulatory infrastructure.
DOJ’s Strategic Realignment
Deputy Attorney General Todd Blanche delivered the news during a policy briefing, explaining the rationale behind the DOJ’s restructuring. Blanche emphasized that while digital assets remain an enforcement priority, the department intends to streamline operations by embedding crypto expertise directly within broader criminal divisions.
According to Blanche, the DOJ wants to move away from a siloed approach and instead integrate digital asset forensics and intelligence into core prosecutorial teams. He explained that bad actors now use cryptocurrency across various domains—terror financing, fentanyl trafficking, child exploitation—and that compartmentalizing crypto expertise under one umbrella no longer makes sense.
“The criminal use of digital assets is not a ‘crypto crime’—it is simply crime,” Blanche stated. “We must meet that reality by equipping every team, from cybercrime to counterterrorism, with the tools and personnel to address these threats directly.”
This shift does not diminish the DOJ’s interest in crypto regulation. Instead, it expands the reach of enforcement by embedding crypto intelligence into broader prosecutorial pipelines. Blanche confirmed that former NCET specialists will now join units handling financial crime, terrorism, narcotics, and organized crime, allowing for more seamless investigations.
Political Context and Regulatory Philosophy
The DOJ’s move comes shortly after President Donald Trump issued an executive order encouraging open innovation and access across decentralized blockchain networks. The executive order, signed in late March, outlines a regulatory philosophy that favors technological growth, public accessibility, and light-touch governance.
Under this new doctrine, federal agencies must reduce barriers for responsible crypto development while still enforcing laws that combat criminal misuse. Industry stakeholders viewed the executive order as a departure from the previous administration’s cautious and enforcement-heavy stance.
Blanche confirmed that the DOJ’s restructuring aligns with this broader policy direction. He stressed that decentralization and innovation do not inherently pose threats—but when bad actors exploit these technologies, law enforcement must act decisively, not reactively.
“We will not treat blockchain as a crime scene,” Blanche said. “We will pursue crimes, not code.”
Industry Reaction: Relief and Caution
Crypto industry leaders responded to the DOJ’s announcement with mixed emotions. On one hand, several executives welcomed the retirement of the NCET, which they viewed as a blunt-force approach that often painted crypto businesses with a broad brush.
Brian Armstrong, CEO of Coinbase, expressed cautious optimism. “This change reflects a more mature understanding of how digital assets function across economic and criminal landscapes,” he said. “We support the DOJ’s focus on prosecuting true criminals, not technologists.”
On the other hand, some legal experts warned that decentralizing enforcement responsibilities could slow investigations or dilute accountability. Angela Walch, a law professor and blockchain governance researcher, argued that without a centralized unit, tracking cross-border criminal networks that rely on crypto might become more difficult.
“The NCET created a single point of coordination and expertise,” Walch noted. “Disbanding it creates risk if proper systems aren’t in place across other units.”
To address these concerns, the DOJ confirmed that it will continue funding blockchain forensic tools and training programs across all regional offices. Additionally, the department plans to host a digital asset law enforcement summit this summer to foster interagency coordination and share investigative frameworks.
Focus Areas: Where Will Enforcement Go Now?
The DOJ laid out a clear set of priorities as it dismantles the NCET. The agency will now concentrate resources on the following areas:
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Terrorism Financing: DOJ analysts noted a rise in terrorist organizations using privacy coins and decentralized exchanges to fund operations. The Counterterrorism Division will now lead efforts to trace and disrupt these networks.
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Narcotics and Dark Web Trafficking: The Criminal Division’s Narcotics and Dangerous Drugs Section will take over investigations previously handled by NCET involving darknet marketplaces and crypto transactions tied to fentanyl and methamphetamine.
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Organized Crime and Ransomware: Crypto-based extortion and ransomware remain top priorities. DOJ cybercrime teams will pursue sophisticated gangs using mixers, tumblers, and noncustodial wallets to obscure stolen funds.
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Child Exploitation Networks: DOJ officials committed to using blockchain analysis to uncover crypto transactions linked to online child abuse platforms, a disturbing trend that has grown over the past two years.
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Cross-Border Money Laundering: The DOJ will continue partnering with Europol, INTERPOL, and the Financial Action Task Force (FATF) to dismantle transnational laundering rings that funnel funds through digital assets.
By embedding blockchain expertise within these specialized units, the DOJ aims to take a more integrated, intelligent approach to enforcement.
What It Means for the Future of Crypto in the U.S.
This structural overhaul signals the DOJ’s acknowledgment that crypto is no longer a fringe industry. Digital assets now form part of the global financial architecture, used by governments, Fortune 500 companies, and millions of everyday users.
Rather than viewing crypto through a narrow lens, the DOJ will approach enforcement based on conduct, not code. This policy evolution opens the door for regulatory frameworks that differentiate between technological innovation and criminal exploitation.
Still, the crypto industry must not interpret this move as a regulatory “green light.” The DOJ made it clear that enforcement will continue with full force, particularly in areas where human harm intersects with digital finance.
Moving forward, companies building in the crypto space must implement robust compliance protocols and maintain transparency with regulators. As enforcement becomes more integrated, firms will face scrutiny not just from crypto-specific teams but from general criminal and financial prosecutors across all jurisdictions.
Final Thoughts
The DOJ’s decision to disband the National Cryptocurrency Enforcement Team marks a significant moment in U.S. regulatory history. It reflects both a maturing understanding of digital assets and a strategic recalibration in the fight against financial crime.
By embedding crypto intelligence into core prosecutorial units, the department hopes to modernize its enforcement strategy without stifling innovation. Whether this model succeeds will depend on coordination, training, and continued investment in forensic tools.
In a world where code moves faster than courts, the DOJ has chosen to adapt rather than resist.
