Focus turns to individual prosecutions as Biden-era crypto unit is quietly dismantled
The United States Department of Justice has officially shut down its National Cryptocurrency Enforcement Team (NCET), marking a significant change in the federal government’s approach to digital asset regulation and oversight.
Launched in 2021 under President Joe Biden, the task force was formed to bring together Department of Justice prosecutors and legal experts to coordinate some of the most high-profile cryptocurrency investigations and prosecutions in recent years. It played a key role in efforts to clamp down on fraud and abuse within the growing crypto industry, acting as a bridge between various enforcement arms of the DOJ and the broader financial regulatory landscape.
However, in a recent announcement, U.S. Deputy Attorney General Todd Blanche confirmed the task force’s dissolution, arguing that its purpose had become blurred over time. “Established in 2021 under President Joe Biden,” Blanche said, “the National Cryptocurrency Enforcement Team was a joint task force” that brought together DOJ prosecutors and other attorneys who collaborated “on some of the biggest crypto cases.”
Blanche went on to criticize the original mandate of the NCET, claiming that the previous administration had allowed it to function more like a regulatory body than a prosecutorial one. “The DOJ should not be in the business of regulating an entire industry,” he asserted, adding that the department’s future focus would be “prosecuting individuals” who scam crypto investors.
The closure of the NCET has sparked mixed reactions among legal analysts and crypto stakeholders. While some view the move as a step toward a more balanced and targeted enforcement strategy, others worry it signals a retreat from coordinated efforts to hold bad actors accountable in an industry frequently criticized for lacking oversight.
The dismantling of the unit comes as the crypto sector continues to face increased scrutiny from both lawmakers and financial regulators. In recent years, enforcement actions against major platforms and fraudulent schemes have escalated, with billions of dollars in losses reported by investors globally.
As the DOJ recalibrates its approach, officials say the emphasis will now shift toward prosecuting specific individuals behind fraudulent schemes rather than pursuing sweeping cases against companies or the industry at large.
While the NCET is no longer operational, its impact on shaping crypto-related enforcement policy over the past four years is likely to leave a lasting legacy in how federal agencies confront financial crime in the digital age.
