A group of US Democratic lawmakers, led by Senator Elizabeth Warren, has strongly criticized the Department of Justice (DOJ) for shutting down its National Cryptocurrency Enforcement Team (NCET).

In an April 10 letter, the group expressed concern that the move undermines efforts to combat growing criminal activity tied to digital assets.

The NCET, disbanded on April 7, was formed to target criminal activity in the digital asset sector. It brought together specialists from DOJ divisions focused on cybercrime and money laundering.

The unit led high-profile crackdowns, including actions against Tornado Cash and cybercriminals tied to North Korea.

Deputy Attorney General Todd Blanche stated that the decision allows the DOJ to redirect its focus toward individual offenders rather than treating the entire crypto industry as a threat. He emphasized that the agency is not a financial regulator and wants to avoid broad-brush enforcement tactics.

New guidance from the DOJ reportedly encourages less scrutiny on crypto exchanges, wallets, and mixers unless directly linked to criminal behavior. According to Blanche, the goal is to prioritize targeted prosecutions rather than sweeping investigations.

US lawmakers slam DOJ decision

Despite these explanations, lawmakers argue that dismantling the NCET poses serious risks.

According to them, the task force played a vital role in helping local and state authorities, many of whom lack the resources or expertise to tackle complex crypto crimes.

They warn that without federal support, enforcement against threats such as sanctions evasion, drug trafficking, and online scams could weaken significantly.

According to the lawmakers:

“These are grave mistakes that will support sanctions evasion, drug trafficking, scams, and child sexual exploitation.”

The letter also highlighted FBI data showing crypto fraud surged to $5.6 billion in 2023—a 45% jump from the previous year.

The Lawmakers argued that this reinforces the need for a specialized federal unit to hold bad actors accountable, including crypto ATM operators and other enablers of illicit finance.

The letter called on the DOJ to reverse its decision, labeling it a misguided shift that undermines crime prevention. The lawmakers also requested a detailed staff briefing by May 1, 2025, to explain the rationale behind the change.

They further questioned whether political considerations, particularly President Donald Trump’s known involvement with various crypto projects, played any role in the DOJ’s decision.

The lawmakers concluded:

“Why would you dismantle a team that is such an important player in fighting cryptocurrency-based crime? Your decisions give rise to concerns that President Trump’s interest in selling his
cryptocurrency may be the reason for easing law enforcement scrutiny.”

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