US Justice Department Shifts Focus: Prioritizes Cartels Over Crypto Fraud Investigations

The United States Department of Justice (DOJ) is altering its approach to cryptocurrency enforcement, reducing investigations into crypto fraud and reallocating resources to combat immigration enforcement, terrorism, and drug trafficking. This shift follows a memo from Deputy Attorney General Todd Blanche, referencing President Donald Trump's commitment to end the "regulatory weaponization" of the cryptocurrency industry. The DOJ will dismantle its National Cryptocurrency Enforcement Team (NCET), established in February 2022 under the Biden administration to address fraud and illicit finance schemes. While some cryptocurrency-related investigations will continue, the DOJ will prioritize cases involving financial harm to digital asset investors and consumers, as well as those supporting cartels, drug traffickers, and designated "terrorist" groups. However, the department will not pursue actions against the platforms used by these enterprises.