In a shocking turn of events in the crypto world, the US Department of Justice (DOJ) has just announced the dissolution of the National Cryptocurrency Enforcement Team (NCET) and has suspended criminal prosecutions against crypto services such as exchanges, coin mixing tools, and cold wallets, unless related to clear crimes such as fraud, rug pulls, or hacks.
This information was disclosed in an internal memo sent to DOJ employees on Monday evening, signed by Deputy Attorney General Todd Blanche. On Tuesday morning, Amanda Tuminelli, the executive director of the DeFi Education Fund advocacy group, publicly announced this memo on social media X.
A 'turnaround' policy change from the US government
Previously, the US government had taken a hard stance against crypto-related platforms, especially high-security services like Tornado Cash – a well-known coin mixing platform often regarded as a money laundering tool. In 2023, the founder of Tornado Cash – Roman Storm – was arrested and charged with money laundering, despite the argument that this is a decentralized platform and not intended to assist crime.
However, with the latest memo, the DOJ clearly states:
"We will no longer prosecute exchanges, coin mixing services, or cold wallet users for actions caused by end users or unintentional legal violations, unless related to clear criminal offenses such as fraud or hacks."
Tornado Cash and the unexpected reversal
This move is particularly noteworthy in the context of Roman Storm's case, which is set to go to trial this summer. Previously, the court rejected the defense argument #TornadoCash based on freedom of speech.
However, last night's DOJ memo opened up the possibility of dropping cases that contradict the new policy, and the case of Tornado Cash could be among them. This became even clearer last month when the US Treasury also lifted some sanctions against Tornado Cash by court order.
Why did the DOJ change its stance?
The DOJ stated that this policy change aligns with an Executive Order issued by President Donald Trump in January 2025. The order requires federal agencies to:
"Protecting and promoting access to public blockchain for individuals and private organizations without fear of punishment or prosecution."
In the memo, Deputy Attorney General Blanche bluntly criticized the policies of the previous administration:
"The previous administration used the DOJ to enforce a reckless, inconsistent regulatory strategy through prosecution."
Therefore, the DOJ will no longer prosecute cases related to vague regulatory violations, especially if those decisions come from lower levels within the crypto organization.
Can exchanges and cold wallets 'breathe easy'?
According to the new policy:
Crypto exchanges will not be prosecuted for the actions of users unless they knowingly assist criminals.
Coin mixing services like Tornado Cash will not be held liable if they only provide neutral tools.
Cold wallet users are no longer listed for criminal monitoring unless they are directly involved in criminal activities.
This is great news for the Web3 community, especially for those pursuing financial privacy and developing decentralized applications (DeFi).
The policy of 'not prosecuting platforms, only prosecuting criminals'
Another important point in the memo: #DOJ will only target criminal organizations or hostile forces like North Korea when they use crypto to launder money, rather than prosecuting the platforms they use.
This means that blockchain infrastructure companies will not be held criminally liable simply because their technology is misused – a mindset considered more progressive and reasonable.
What lies ahead?
The DOJ's policy reversal brings many consequences:
Increased confidence for Web3 developers: They will feel less threatened by unclear legal risks.
Attracting investment back to the US: Crypto companies will have more reasons to return or establish headquarters in the US.
Reframing the legal battle: Lawsuits like Tornado Cash may be reconsidered or dropped.
However, observers warn that this policy could change if there is a transfer of power in the future, or if serious abuses of technology occur.
Conclusion:
After years of tightening regulations in the crypto industry, the US Department of Justice has unexpectedly changed course, paving the way for a more open and reasonable legal environment for blockchain technology. Under the leadership of President Donald Trump, the US seems to want to become the 'new paradise' for digital assets, where users and developers can freely innovate without fear of unreasonable prosecution.
Risk warning: This article is not intended to provide legal or investment advice. The crypto market is always fraught with volatility and legal risks. Always stay updated with information from government agencies and legal experts before engaging in investment or developing blockchain products.