Senator Elizabeth Warren led a group of Democratic lawmakers to challenge the Department of Justice about its unexpected closure of the National Cryptocurrency Enforcement Team NCET.

The legislators discuss through an April 10 letter that the department’s decision reduces federal power in the fight against digital asset criminals.

Since its founding in 2021 until its official end on April 7th, the National Cryptocurrency Enforcement Team had served as the primary cybercrime combatant force in federal financial prosecutions. The combined DOJ teams in cybercrime and anti-money laundering used their unique expertise to successfully arrest Tornado Cash operators and North Korean hackers.

FBI Data Fuels Concerns Over Disbanded Crypto Unit

Senator Warren and her allies perceive this action as a misguided move that undermines progress at an important stage. The lawmakers pointed out the FBI recorded a 45 percent jump in crypto fraud to $5.6 billion during 2023 with their letter to explain why dismantling this unit poses risks to state and local teams’ investigative support. According to the lawmakers:

“These are grave mistakes that will support sanctions evasion, drug trafficking, scams, and child sexual exploitation.”

Deputy Attorney General Todd Blanche supported this change by saying the DOJ wants to take legal actions against people involved in criminal activities separately from the wider cryptocurrency field. He suggested that because the DOJ does not police finance activities, they must stop making actions that would harm market creativity.

Concerns Raised Over Political Motives Behind DOJ Move

Under recent DOJ policies, crypto platforms and services no longer need extensive monitoring unless they participate in criminal operations. The government wants to take action against specific criminal suspects rather than making broad industry arrests.

But the lawmakers remain unconvinced. They claim the NCET is essential because smaller law enforcement offices cannot handle blockchain-related criminal activities effectively by themselves.

The letter points out political motives could have driven the DOJ’s lighter enforcement stance because President Trump had investments in cryptocurrency projects. The lawmakers wrote:

“Why would you dismantle a team that is such an important player in fighting cryptocurrency-based crime? Your decisions give rise to concerns that President Trump’s interest in selling his cryptocurrency may be the reason for easing law enforcement scrutiny.”

Through this letter the officials demanded the DOJ change its enforcement policy and wanted to receive detailed information by May 1, 2025 about their decision-making process. Lawmakers say financial crime prevention in the digital realm faces risk because of their actions. The US Department of Justice has not given any answer to the group of Congress members who wrote to them.