US DOJ Disbands NCET Crypto Unit: Focus on Investor Protection

The US Department of Justice has announced that it is disbanding the National Cryptocurrency Enforcement Team (NCET), which previously handled investigations into digital assets. According to an internal memo signed by Deputy Attorney General Todd Blanche, the department is changing its strategic focus and withdrawing from a number of initiatives related to crypto exchanges, crypto mixers, and crypto wallet developers.

Blanche noted that regulating digital assets is not the direct responsibility of the Justice Department, despite the fact that the department was previously actively involved in this area by the previous administration. He accused the previous White House leadership of “recklessly prosecuting” crypto market participants and said that the priority is now being given to investigating fraud against investors. NCET previously employed cybercrime and money laundering specialists who investigated cases related to projects such as Tornado Cash and the activities of North Korean hackers.

Trump’s Policy and the Libra Memecoin Case

The change in the Justice Department’s course is related to the new crypto policy of the Donald Trump administration. In January of this year, Trump signed an executive order aimed at providing «regulatory clarity» for crypto industry participants. This became the starting point for revising the role of government agencies in regulating digital assets.

Amid these changes, the Justice Department is still continuing a number of investigations, including the Libra memocoin crash. This project became famous thanks to the support of Argentine President Javier Miley and attracted the attention of both investors and regulators. Despite the disbandment of the NCET, cases involving large financial losses are still in the sights of the American justice system.