U.S. senators press deputy attorney general over DOJ’s disbanding of crypto enforcement unit

U.S. senators have raised concerns about potential conflicts of interest involving Deputy Attorney General Todd Blanche over the disbanding of the U.S. Department of Justice’s (DOJ) dedicated virtual-asset investigative unit. They formally questioned the rationale and decision-making process behind dismantling the team at a time when illicit activity involving virtual assets was surging.

According to Cointelegraph on the 28th (local time), six U.S. senators—including Mazie K. Hirono, Elizabeth Warren and Richard Durbin—sent a letter to Blanche asking about the motivations for the decision to shut down the crypto investigation unit and whether any conflicts of interest were involved.

Blanche disbanded the DOJ’s National Cryptocurrency Enforcement Team (NCET) in April 2025. The unit was launched in 2022 under the Joe Biden administration and had led major virtual-asset investigations, including the case involving Binance and former CEO Changpeng Zhao over alleged violations of anti-money-laundering laws.

At the time, Blanche argued that the DOJ “is not a digital asset regulator,” and claimed the previous administration had pursued excessive regulation through criminal prosecutions. Senators, however, took issue with the fact that he reportedly held sizable virtual-asset positions when he made the decision.

According to the lawmakers, Blanche disclosed that as of Jan. 21—just before President Donald Trump’s inauguration—he held virtual assets such as Bitcoin and Ethereum worth about $158,000 to $470,000. He said on Feb. 10 that he would divest the assets as quickly as possible, but the actual sale took place on May 31.

In the letter, the senators said that the fact he held substantial virtual assets at the time of the decision “raises questions about your motivations,” adding that it was “at minimum an apparent conflict of interest” and that he should have recused himself.

They also cited data from TRM Labs showing that the scale of illicit activity tied to virtual assets rose sharply year on year to about $158 billion in 2025, questioning whether dismantling the unit was timely. Losses from hacks and similar incidents that year were estimated at $2.87 billion.

The senators had previously warned in a separate letter in April that disbanding the crypto investigation unit could encourage crimes such as sanctions evasion, drug trafficking and financial fraud.