U.S. Senators, including Mazie K. Hirono, Elizabeth Warren, and Dick Durbin, are calling on Deputy Attorney General Todd Blanche to reverse recent decisions by the Department of Justice (DOJ) that effectively terminate investigations into cryptocurrency-related crimes. This request follows a memo indicating that the DOJ will no longer enforce specific federal laws against digital asset entities and will disband its National Cryptocurrency Enforcement Team (NCET).
In their letter, the Senators express concern about these DOJ actions, especially the disbanding of NCET, which was responsible for prosecuting criminal activities involving cryptocurrency. "These are grave mistakes that will support sanctions evasion, drug trafficking, scams, and child sexual exploitation," they stated.
The Senators criticized the DOJ's decision to not target virtual currency exchanges or mixing services, which are often associated with laundering stolen cryptocurrency. "It makes no sense for DOJ to announce a hands-off approach to tools that are being used to support such terrible crimes," they wrote.
The letter further argues that the DOJ's decisions could create vulnerabilities that bad actors such as drug traffickers, terrorists, and fraudsters will exploit. The Senators pointed out that NCET has had a successful record in tackling cryptocurrency-related illicit activities and that its disbandment would only increase risks posed by bad actors.
Concerns were raised about the possible influence of President Trump's cryptocurrency ventures on the DOJ's decision to reduce scrutiny in this area. The Senators cite NCET's achievements, such as securing convictions and recovering illicit funds, as evidence of its importance in fighting cryptocurrency-based crime.
The letter concludes with a request for Deputy Attorney General Blanche to reconsider these actions and to brief the Senate by May 1, 2025, on the rationale behind the decisions and their potential impact.
The letter was signed by six additional Senators: Sheldon Whitehouse, Chris Coons, and Richard Blumenthal, among others. They emphasize the importance of maintaining regulatory oversight over digital currencies and ensuring that those who enable crime through digital assets are held accountable.