Is crypto left open to crime?


A fierce controversy has just erupted in Washington D.C. after the U.S. Department of Justice (DOJ) unexpectedly decided to dissolve the National Crypto Enforcement Team (NCET) – the unit responsible for investigating and prosecuting crimes related to digital assets. Six Democratic Senators, including prominent names like Elizabeth Warren and Dick Durbin, vehemently opposed this decision, arguing that it is an act of 'complicity' in money laundering, terrorism financing, and financial fraud using crypto.


In a letter to Deputy Attorney General Todd Blanche dated April 10, Senators stated: the dissolution of NCET makes the U.S. more vulnerable to modern forms of crime, especially as platforms like crypto ATMs, decentralized protocols (DeFi), mixers, and cold wallets continue to operate without strict control.



DOJ's response: 'Not the crypto regulator'


Mr. Todd Blanche, the decision-maker for the dissolution #NCET , affirmed in an internal memo that the Department of Justice is not the regulatory body for digital assets and will not impose criminal penalties for purely crypto activities. He cited an executive order from President Donald Trump issued in January 2025 – which called for the establishment of a clear legal framework for the crypto industry – as the basis for this move.


However, Democratic lawmakers strongly rebutted this argument, stating that if the DOJ cannot handle platforms that aid digital crime, it is no different than 'turning a blind eye' to the reality that crypto is being abused for illicit purposes. They also express concern that the absence of NCET will create conditions for international crime, terrorist organizations, and hostile forces to easily exploit system loopholes.



NCET: 'The bridge between federal and local'


Established in 2021, NCET is one of the first federal units designed to prosecute crimes related to crypto. In addition to its investigative function, NCET also plays a role in supporting state and local law enforcement agencies – which often lack specialized knowledge about blockchain technology, how cold wallets operate, DeFi protocols, or how to trace money flows through mixers.


Senators argue that the dissolution of NCET means cutting off the 'only technical line' that helps local agencies understand and handle complex cases related to digital assets.



New York Attorney General speaks out


Not only Senators, but New York Attorney General Letitia James also expressed deep concern about this move. In a letter to Congress on April 8, she called for the enactment of a strong federal law to regulate crypto market activities. Although she did not directly mention NCET or Mr. Blanche, her office asserted that the #DOJ withdrawal from the crypto front makes the legal gap even more dangerous.



Crypto - a battle that should not 'lay down arms'


In summary, while the DOJ believes it is necessary to transfer the oversight of digital assets to civil agencies rather than handle them criminally, many lawmakers warn that this approach is no different than 'laying down arms' in one of the most important fronts in the fight against modern financial crime. Crypto is no longer just a new technology – it has become an ideal operating environment for many cybercriminals, transnational money laundering, and hostile forces against the U.S.


The decision to dissolve NCET raises questions not only about the law enforcement strategy regarding crypto in the U.S. but also highlights the growing divide among power branches in shaping the future of digital assets.



Contacting the crypto market and Binance users


For crypto users in general and users on Binance in particular, this development could profoundly impact trust in the transparency and legal safety of the U.S. market. In the context of many countries tightening regulations on digital assets, the U.S. appearing more lenient in prosecuting crypto crimes could create a wave of capital migration away from U.S. exchanges, while increasing demand for trading on reputable and compliant exchanges like Binance.



Risk warning:

The cryptocurrency market always carries high risks and is not suitable for everyone. Users should carefully consider, equip themselves with sufficient knowledge, and only invest what they can afford to lose entirely. Every investment decision should be based on personal understanding and should not depend on any news sources or temporary trends.

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