The NCET was created in 2022 to combat illicit financial activities being facilitated using cryptocurrencies.
The NCET was established in February 2022
Photo Credit: Unsplash/ Bermix Studio
The US Department of Justice (DoJ) has disbanded the National Cryptocurrency Enforcement Team (NCET) that was established by former US President Joe Biden, according to a report. The members of the unit were informed about the development via an internal memo, which said the directive would go into effect immediately. The development comes at a time when US President Donald Trump is attempting to remove various roadblocks to the adoption of cryptocurrencies in the US via executive orders. After recently issuing an order related to strategic crypto reserves, the US President has asked lawmakers to finalise crypto rules for the US by August.
The directive, seen by Fortune, was signed by US Deputy Attorney General Todd Blanche. "The Department of Justice is not a digital assets regulator. However, the prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution," Blanche reportedly said.
The NCET, as per the DoJ, included prosecutors with backgrounds in cryptocurrency, cybercrime, money laundering, and forfeiture.
After it was established in 2022, the NCET launched investigations into multiple crypto firms. In August 2023, the NCET's probe into Tornado Cash resulted in money laundering and sanctions violations charges against the crypto mixer. KuCoin and its founders were also charged for unlicenced money transfer offences after an NCET probe. The unit additionally dealt with several cases related to crypto scams, market manipulation, and hacking incidents.
The NCET was designed to combat illicit financial activities being facilitated using cryptocurrencies, that offer private transactions between two or more parties. According to a Reuters report, Blanche's memo said that all ongoing NCET investigations not in alignment with new policies in the US now stand closed.
Following US President Donald Trump's return to the White House for a second term, the US Securities and Exchange Commission (SEC) has also reversed its sceptical stance towards crypto. The SEC has now formed a Crypto Task Force to expedite the formation of crypto rules, and dropped several ongoing legal cases against crypto firms.
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