U.S. senator accuses Deputy Attorney General of shutting down the Justice Department's crypto enforcement team due to his large holdings of cryptocurrencies

Foresight News reports that six U.S. senators, including Mazie K. Hirono, Elizabeth Warren, and Richard Durbin, sent a letter on January 28 to Deputy Attorney General Todd Blanche, questioning his decision to disband the Department of Justice (DOJ) National Cryptocurrency Enforcement Team (NCET) in April 2025. The senators pointed out that although Todd Blanche claimed that the DOJ should not act as a regulator of digital assets, he personally held cryptocurrencies valued at approximately $158,000 to $470,000 at the time of the decision, constituting a clear conflict of interest and potentially violating federal laws involving personal financial interests. The senators previously described shutting down the department as “a serious mistake,” believing it would facilitate sanctions evasion, drug trafficking, and scams.

The letter cites data indicating that illegal cryptocurrency activities surged by 162% in 2025, primarily driven by a significant increase in cryptocurrencies received by sanctioned entities, with money laundering networks becoming the “dominant force” in the digital asset space. The senators believe that Todd Blanche’s actions may have violated the provisions of 18 U.S.C. § 208(a), which concern the influence of personal financial interests on official decisions. Currently, Todd Blanche has been listed as a complainant by the DOJ Office of the Inspector General.