DOJ shifts focus on crypto enforcement with disbandment of NCET
Timothy Morano Apr 22, 2025 08:19
According to the Blanche Memo, the DOJ has disbanded its National Cryptocurrency Enforcement Team and is now focusing on illicit activities that involve digital assets.
The U.S. Department of Justice has announced that it is changing its approach towards digital asset enforcement. This includes disbanding the National Cryptocurrency Enforcement Team and focusing on criminal activities which exploit digital assets. This change follows a memo issued by Deputy attorney general Todd Blanche known as the "Blanche Memo," which focuses on tackling criminal misuse of digital asset rather than prosecuting regulatory technical violations.
Focus on Criminal Exploitation
Chainalysis reports that the DOJ has a new strategy to prioritise investigations of crimes committed using digital assets, including fraud, terrorism and cybercrime. The DOJ wants to protect citizens against the misuse of digital assets while supporting innovation in the digital world.
Reprioritizing Resources
The NCET was established in 2022 and played a key role in examining major cases involving digital assets. The NCET's closure is part a wider strategy to integrate digital assets expertise into criminal investigations. This will ensure that efforts are concentrated on crimes enabled by digital resources. This is in line with Executive Order 14178, which outlines the DOJ's commitment towards tackling complex crimes that have a crypto-nexus.
Chainalysis and Enforcement
Chainalysis is continuing to play an important role in supporting DOJ efforts. They provide data, tools and training in order to combat criminal activity in the digital asset space. They are involved in disrupting the fentanyl eco-system, exposing organized crime operations and supporting the DOJ to dismantle terrorism funding schemes. Chainalysis technology is also used to track and recover illicit funds. This helps the DOJ achieve its objectives of financial recovery and victim protection.
Compliance and Industry Implications
In its new guidance, the DOJ clarifies that platforms for digital assets will only be prosecuted if they have knowingly committed or enabled crime. The industry now has a more defined framework, which emphasizes the importance of anti-money-laundering (AML), and know-your customer (KYC), compliance measures. The DOJ is committed to pursuing criminal activity, which aligns with Chainalysis’ mission to protect the ecosystem of digital assets.
Future of Digital Asset Enforcement
The DOJ has a strategy to protect legitimate innovation while taking a firm stance against criminals who abuse digital assets. This strategy is designed to protect the integrity and security of the digital asset ecosystem.
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