The DOJ Closes NCET, Rewrites Its Crypto Enforcement Playbook

The DOJ is pulling the plug on its crypto crimes unit, Fortune reports. An internal memo sent Monday night confirmed the shutdown, signaling a big shift in how U.S. authorities handle digital asset enforcement.

Instead of cracking down on platforms like Tornado Cash or decentralized wallets, the new focus will be on prosecuting actors who harm investors directly. It’s a change in tone—and one that actually started taking shape years ago under earlier leadership.

A Brief History of NCET

The National Cryptocurrency Enforcement Unit, or NCET, was founded in 2021 during President Biden’s term, tasked with investigating criminal activity tied to digital assets. Its composition featured DOJ attorneys from anti-money laundering and cybercrime divisions, along with district-level enforcement officials.

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U.S. Deputy Attorney General Todd Blanche announced the decision, stating: “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,

said U.S. Deputy Attorney General Todd Blanche, as quoted by Fortune.

From cryptomixers to international money laundering rings, NCET had its hands full. The unit made headlines investigating crypto fraud involving North Korean operatives and high-stakes exploits like the one orchestrated by Avraham Eisenberg, who walked away with over $100 million by manipulating a DeFi protocol.

DOJ Switches Gears on Crypto Oversight

The DOJ has issued revised guidance that redefines its crypto enforcement priorities, directing staff to focus on offenses involving damage to investors in digital assets. This nuanced shift distances current policy from NCET's broader mandate, which encompassed takedowns of cryptomixer networks and punitive measures against crypto-enabled cybercrime.

Regulations in Crypto: U.S. SEC Acting Chair Mark Uyeda Orders Crypto Regulation Review 

It’s part of a larger pattern. Under the last administration, agencies like the SEC and CFTC were nudged to soften their stance and rethink crypto oversight. The underlying message was clear: make room for innovation. 

With this new shift in how crypto crimes are prosecuted, analysts say we could see ripple effects across the market—though no one’s betting on what shape that will take just yet. For now, crypto exchanges and investors are watching for signs that smarter, more focused regulation could bring a welcome dose of stability.