US Justice Dept Disbands Crypto Team Citing Trump-Era Order
In a surprising move, the U.S. Department of Justice (DOJ) has officially shut down its dedicated crypto team, attributing the decision to compliance with a still-active executive order signed during Donald Trump’s presidency. The move is sparking new questions about the federal government’s future approach to cryptocurrency regulation.
Crypto Team Was Key to Fighting Digital Asset Crimes
The now-disbanded team was created to respond to the surge in cryptocurrency-related crimes, including blockchain fraud, ransomware attacks, and illegal transactions on decentralized platforms. Over the past few years, the unit played a central role in tracking and prosecuting complex digital asset cases, including multimillion-dollar fraud schemes and international money laundering operations.
Officials say that the decision wasn’t based on performance. Instead, it aligns with a Trump-era directive designed to limit the scope and number of specialized federal task forces. That directive, which remains unrevoked, calls for simplifying government operations and reducing what the administration described as “bureaucratic redundancy.”
Analysts Warn of Slower Enforcement and Reduced Oversight
Security experts and legal analysts are now voicing concern. Many believe that dissolving the crypto team may slow future investigations and reduce the government’s ability to keep up with fast-evolving crypto crimes. “We’re seeing more threats, not fewer,” said one blockchain compliance advisor. “Dismantling a focused unit during a time of increased digital crime is risky.”
Moreover, with crypto scams and ransomware attacks growing globally, critics argue that now is not the time to dilute federal oversight.
DOJ Says Efforts Will Be Reorganized
In response to the criticism, DOJ representatives have stated that crypto-related work will be redistributed across other divisions. However, no details have been shared about how those efforts will be coordinated or whether existing expertise will be retained. For now, enforcement strategies remain unclear.
Crypto Community Reacts with Mixed Feelings
Reactions from the crypto community have been mixed. Some welcomed the move, hoping it signals fewer regulatory crackdowns. Others worry that it may encourage bad actors, especially with fewer specialized agents watching the blockchain space.
