DOJ Shifts Focus in Crypto Enforcement with Disbandment of NCET

The DOJ disbands its National Cryptocurrency Enforcement Team, shifting focus to illicit activities involving digital assets, as per new guidance from the Blanche Memo.

The U.S. Department of Justice (DOJ) is shifting its focus in digital asset enforcement, moving away from a dedicated cryptocurrency task force to direct attention on criminal activities that leverage digital assets.

This change, signaled by Deputy Attorney General Todd Blanche’s memo, prioritizes the misuse of digital assets for crimes over technical regulatory violations.

The DOJ's strategy, discussed by Chainalysis, aims to prioritize investigations into crimes that use digital assets to cause harm or facilitate broader criminal activities.

These include fraud, terrorism, drug trafficking, human trafficking, cybercrime, and organized crime. The DOJ intends to support innovation in the digital economy while protecting citizens from the misuse of digital assets.

The NCET, established in 2022, will be disbanded as part of this shift. Its role in scrutinizing major digital asset-related cases will be integrated into broader criminal investigations.

The goal is to ensure that efforts are focused on crimes further enabled by digital assets, aligning with the DOJ's commitment to addressing complex crimes with a crypto nexus, as highlighted by Executive Order 14178.

Chainalysis continues to support the DOJ's efforts by providing data, tools, and training to combat crime in the digital assets space.

Their involvement includes disrupting the fentanyl ecosystem, unmasking organized crime operations, and supporting the DOJ in dismantling terrorism financing schemes.

Chainalysis' technology also assists in tracking and recovering illicit funds, contributing to the DOJ's objectives of victim protection and financial recovery.

The DOJ's new guidance clarifies that digital asset platforms will face prosecution only if they knowingly commit or enable crime.

This provides a clearer framework for the industry, emphasizing the importance of robust anti-money laundering (AML) and know-your-customer (KYC) compliance measures.

The DOJ remains committed to prosecuting criminal activities, aligning with Chainalysis's mission to protect the digital assets ecosystem.

The DOJ's approach is designed to ensure that legitimate innovation is not hindered while maintaining a strong stance against those who misuse digital assets for criminal purposes.

This strategy aims to protect the integrity of the digital assets ecosystem, supporting a secure and inclusive digital economy.