Crypto Market News: Democrats Rage as DOJ Shuts Down Crypto Crime Unit

A group of Democratic senators is criticizing the Department of Justice (DOJ) for shutting down its National Cryptocurrency Enforcement Team (NCET), calling the move a serious misstep. Six senators, led by Senate Elizabeth Warren, wrote to Deputy Attorney General Todd Blanche in a letter dated April 10 to explain the decision.

Meanwhile, the circle included Senators Richard Durbin, Mazie Hirono, Sheldon Whitehouse, Christopher Coons and Richard Blumenthal. The lawmakers warned the extinction of the crypto unit was a healthy observation step essential to staving off illegal activity. They said ending the unit’s work “sends the wrong message to those who use digital assets to bypass U.S. laws.”

Concerns Over Crypto Mixers and Enforcement Gaps

The senators expressed alarm over the DOJ’s decision to reduce focus on crypto exchanges and mixing services, which are often used to obscure transaction history. According to the letter, these tools have been widely adopted by criminals to move funds without detection.

“By stepping away from enforcement, the DOJ is leaving the door open for bad actors to use these services without fear of accountability,” the lawmakers wrote. They added that removing the DOJ’s oversight “gives a green light to those operating in the shadows of the financial system.”

They also pointed out that violations involving digital currencies could go unchecked, with one portion of the letter stating that “key provisions of federal law, including those tied to anti-money laundering, may now be ignored by crypto entities.”

Link to Trump Family Business Interests

The senators raised concerns that the DOJ’s actions may be politically influenced, especially given the Trump family’s growing involvement in the crypto industry. The letter mentions Trump-backed ventures like World Liberty Financial and an upcoming mining operation started by Trump’s sons.

They questioned whether the shift in enforcement might be related to “private financial interests connected to President Trump.” One line read: “When senior officials reverse priorities in ways that benefit political allies, it raises fair questions about their motivations.”

Todd Blanche, who led the disbandment, previously served as a lawyer for Donald Trump. His decision has led to questions about whether the department’s approach to crypto crime is being steered by political concerns.

Local Law Enforcement Could Face New Challenges

According to the letter, the NCET had supported state and local agencies that lack the tools and expertise to investigate crimes involving digital currencies. Its removal, they warned, will make it harder for those agencies to respond to threats.

“Without federal backing, smaller law enforcement offices will be at a disadvantage when tackling these complex investigations,” the senators noted. The letter also warned that dropping enforcement efforts now could allow criminal networks to expand with little resistance.

At that moment, President Trump had just approved a win for the crypto firms as he allowed reversal of the IRS rule that requires crypto firms to submit transaction data. New York Attorney General Letitia James went as far as to urge Congress to pass laws that more clearly define crypto to reduce legal holes as they arise.