U.S. Senator accuses the Deputy Attorney General of shutting down the Justice Department's cryptocurrency enforcement team due to holding a large amount of cryptocurrency

On January 28, six U.S. Senators, including Mazie K. Hirono, Elizabeth Warren, and Richard Durbin, sent a letter to Deputy Attorney General Todd Blanche, questioning his decision to dissolve the Department of Justice (DOJ) National Cryptocurrency Enforcement Team (NCET) in April 2025.

The Senators pointed out that although Todd Blanche claimed that the DOJ should not act as a regulator of digital assets, he himself held cryptocurrencies valued between approximately $158,000 and $470,000 at the time of making that decision, which constitutes a clear conflict of interest and may violate federal laws regarding personal financial interests. The Senators had previously referred to the shutdown of the department as a "serious mistake," believing it would facilitate criminal activities such as sanctions evasion, drug trafficking, and fraud. The letter cited data showing that illegal cryptocurrency activities surged by 162% in 2025, primarily driven by a significant increase in cryptocurrencies received by sanctioned entities, and that money laundering networks have become a "dominant force" in the digital asset space. The Senators believe that Todd Blanche's actions may violate the provisions of federal law 18 U.S.C. § 208(a) regarding the influence of personal financial interests on public decision-making. Currently, Todd Blanche has been named as a subject of a complaint to the DOJ Office of the Inspector General.