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The National Cryptocurrency Enforcement Team is no longer
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NCET, a new NCET created in 2021, focuses on crimes like money laundering and cyberattacks
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Todd Blanche, Deputy Attorney general of the DOJ, has ordered DOJ staffers to focus on prosecuting those that defraud digital assets investors
The US Department of Justice has announced the dissolution of their National Cryptocurrency Enforcement Team. This unit was created to investigate and prosecute crimes involving digital assets.
This decision is in line with the Trump Administration’s initiative to streamline federal operations, and reduce regulatory oversight within the financial sector.
NCET’s formation and notable past cases
The NCET was formed to combat the growing challenges posed by the misuse and abuse of cryptocurrencies. It focused on crimes like money laundering and cyberattacks. The NCET was established in 2021, under the administration of Joe Biden. It was part the DOJ strategy to adapt to an evolving digital financial landscape.
Todd Blanche, the former defense attorney for Donald Trump, has ordered DOJ staffers to focus on prosecuting people who defraud investors of digital assets. This appears to be a shift from general regulation towards targeting fraudsters.
NCET has been involved in some of DOJ’s largest crypto cases. It helped to catch Avraham Eisberg (accused of exploiting an exchange protocol for $110,000,000) and arrested founders of Tornado Cash, which was allegedly used to launder more than $1 billion.
Move Aligns With Admin’s Streamlining and Pro-Crypto Signs
The termination of NCET reflects current administration’s commitment towards reducing what they perceive as excessive regulatory frameworks which may hinder innovation in cryptocurrency space. The DOJ appears to be focusing on criminals instead of imposing overarching regulation, in order to create a more favorable climate for digital asset development.
The disbandment of the NCET appears to be in line with a series organizational changes within DOJ, including reductions in force as well as reorganizational proposals submitted to Trump administration. This could also be part of another Trump crypto policy, since the US President has said several times that he wants to make the US the crypto capital of world.
He signed an executive order to create the Bitcoin reserve and hosted a crypto summit where many prominent crypto players attended.
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