Six U.S. Senators are demanding answers from Deputy Attorney General Todd Blanche regarding his decision to dissolve the Department of Justice's (DOJ) National Cryptocurrency Enforcement Team last year. The senators allege a significant conflict of interest, pointing to Blanche's substantial personal cryptocurrency holdings at the time of the controversial move, which they argue undermines the DOJ's crucial efforts to combat illicit financial activities.
Contested Decision and Allegations of Conflict
Deputy Attorney General Todd Blanche moved to disband the DOJ's National Cryptocurrency Enforcement Team (NCET) in April 2025, several months after the inauguration of former President Donald Trump. Blanche justified the closure by stating that the DOJ is not a "digital asset regulator" and criticized the previous administration for "regulation through prosecution." However, a bipartisan group of senators, including Mazie K. Hirono and Elizabeth Warren, has directly challenged his motivations. They claim Blanche possessed "substantial quantities" of cryptocurrencies, specifically Bitcoin (BTC) and Ethereum (ETH), valued between $158,000 and $470,000, just days before Trump's inauguration. This significant personal stake at the time of the decision raises serious questions about his impartiality.
Congressional Scrutiny and Ethical Concerns
The senators' letter to Blanche highlights a critical timeline: his appointment on March 5, the memo to reduce the enforcement task force on April 7, and his eventual divestment of crypto assets on May 31. This approximate two-month window during which he held crypto while making key decisions led the senators to assert, "At a minimum, you had a clear conflict of interests and should have recused yourself," suggesting his actions might violate 18 U.S.C. § 208(a) regarding personal financial interests. Furthermore, the senators had previously warned Blanche that closing the unit was a "grave error" that would support sanction evasion, drug trafficking, scams, and child sexual exploitation. Their concerns are underscored by data showing illicit cryptocurrency activity soared to a record $158 billion in 2025, a nearly 145% increase from the previous year, emphasizing the critical need for robust enforcement.
