America's Justice Department "has shut down its unit that investigates cryptocurrency fraud," reports USA Today.
A Monday night memo from U.S. Deputy Attorney General Todd Blanche said the shut down was "effective immediately."
Blanche directed the closure of the National Cryptocurrency Enforcement Team and ordered prosecutors to pivot to investigating transnational criminal organizations and terrorist groups that use crypto to engage in illicit transactions... In his four-page memo, Blanche said the new order was meant to bring the Justice Department in line with Trump's own Executive Order 14178, which decreed that clarity and certainty regarding enforcement policy "are essential to supporting a vibrant and inclusive digital economy and innovation in digital assets." Blanche, one of several Trump criminal defense lawyers at the top ranks of DOJ, said the president "has also made clear that '[w]e are going to end the regulatory weaponization against digital assets'..."
Consistent with that narrowing of its cryptocurrency enforcement policy, the DOJ Market Integrity and Major Frauds Unit will also cease cryptocurrency enforcement to focus on other administration priorities, including immigration and procurement fraud, Blanche said.
The Washington Post got this assessment from Yesha Yadav, a Vanderbilt University law professor who closely follows cryptocurrency and financial markets. "It's hard to underestimate the importance this task force has had ... in pursuing some really huge crypto hacks and cases."
More from USA Today:
Public corruption and transnational crime experts warned that shutting down the unit could divert critical resources from efforts to stop criminals and corrupt regimes from using cryptocurrency for illicit gain, even as Trump claims he wants to crack down on them. "Dangerous US adversaries rely on cryptocurrencies to launder money and evade sanctions," said Nate Sibley, an anti-corruption expert and director of the Kleptocracy Initiative at the conservative Hudson Institute think tank in Washington, D.C., in a post on X. "If this is accurate, hard to see how it squares with — for example-cracking down on cartel finances or maximum pressure sanctions on Iran...."
Trump's so-called "memecoin" surged from less than $10 on the Saturday before his inauguration to as high as $74.59 before eventually giving up some of its gains. The token, branded $TRUMP, has been criticized by ethics experts as a conflict of interest for the president since the company could likely benefit from his pro-crypto policies...
Last month, Trump signed an order to create a federal Strategic Bitcoin Reserve, signaling new federal support for cryptocurrency in general and Bitcoin in particular.
Since the first-ever White House crypto summit in March, America's Securities and Exchange Commission "has dropped more than a dozen cases against crypto firms," notes the Washington Post:
Last month, both the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency pledged to stop evaluating banks based on "reputational risk" — a practice that some venture capitalists have claimed unfairly "de-banked" founders of cryptocurrency start-ups.
In other news, executives from cryptocurrency exchange Binance "met with Treasury Department officials last month," reports the Wall Street Journal, asking them to remove a U.S. monitor overseeing their compliance with anti-money-laundering laws, according to people familiar with the talks.
The article adds that Binance is also concurrently "exploring" a deal with the Trump family to list its new dollar-pegged stablecoin which "could catapult it into a huge market and potentially bring in billions in profit for the family. "
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