Justice Department Shuts Down Cryptocurrency Enforcement Unit Amid Restructuring

Major Overhaul at the DOJ Targets Crypto Crime Strategy

In a significant move that signals a shift in how the United States tackles digital asset-related crimes, the U.S. Department of Justice (DOJ) has officially shut down its National Cryptocurrency Enforcement Team (NCET). The closure, confirmed on April 8, 2025, marks a strategic restructuring rather than a retreat from crypto crime enforcement.

Announced in 2021, the NCET was initially created to focus on investigating and prosecuting criminal misuse of cryptocurrencies, including ransomware attacks, illicit use of digital assets, and cases related to money laundering through crypto platforms. As the digital currency landscape evolves, so too does the government’s approach.

Why the DOJ Disbanded NCET

According to Department of Justice officials, the disbanding of NCET is part of a broader initiative to streamline operations and integrate digital asset crime investigations within larger, more established divisions of the DOJ. Rather than maintaining a standalone unit, the expertise and resources of the NCET are being embedded into the DOJ’s broader Criminal Division and Cybercrime Units.

The key reasons behind this shift include:

• Operational Efficiency: Consolidating crypto enforcement efforts within core units reduces redundancy and improves communication across different teams.
• Evolving Threat Landscape: As the tactics used by cybercriminals change, the DOJ aims to respond with adaptive, cross-functional teams that can investigate blockchain-based crimes more effectively.
• Resource Optimization: Rather than maintaining a separate team, embedding crypto experts within existing structures allows for better utilization of federal resources.

DOJ Deputy Attorney General Lisa Monaco emphasized that the move does not represent a step back from prosecuting cryptocurrency-related crimes. Instead, it reflects a modernization of the Justice Department’s approach to combatting tech-enabled financial crime.

Redistribution of Responsibilities

With the NCET officially sunset, the DOJ is reallocating its responsibilities to several key divisions more aligned with present-day digital threat profiles.

Here’s where the crypto crime responsibilities are now going:

• The Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS): This team will now handle much of the digital assets investigation, particularly where cybercrime intersects with theft and fraud.
• The Money Laundering and Asset Recovery Section (MLARS): Focused on tracing illicit proceeds, this division will take on major crypto-based money laundering investigations.
• The FBI’s Virtual Assets Unit (VAU): Operational since 2022, the VAU continues to develop blockchain forensics capabilities and provide field support during crypto investigations.

This reorganization essentially integrates cryptocurrency enforcement into the DOJ’s core framework–a move that many argue is long overdue given the mainstream adoption of digital assets.

Public Reaction and Industry Impact

News of the NCET’s dissolution has drawn mixed reactions across the cryptocurrency industry and legal community. While some see it as a sign that the DOJ is acknowledging the need for a more robust and agile cross-departmental strategy, others voice concern about continuity and focus.

Key industry reactions include:

• Crypto firms: Some blockchain startups and exchanges have expressed uncertainty, worrying that shifting resources might slow down regulatory clarity.
• Legal experts: Many attorneys specializing in digital asset regulations say this change could improve case coordination and prosecutorial oversight.
• Privacy advocates: Digital privacy organizations are hopeful that DOJ restructurings will accompany better transparent standards concerning surveillance and seizure of crypto assets.

Still, the DOJ has maintained that the reorganization will not mean any reduction in crypto oversight—and in fact, assets already seized in ongoing crypto cases will continue to be managed by existing legal structures.

A Look Back at NCET’s Impact

Since its formation in October 2021, the National Cryptocurrency Enforcement Team played a vital role in several high-profile investigations and seizures.

• Ransomware Takedowns: Through joint efforts with international partners, NCET aided in dismantling major ransomware groups like REvil and DarkSide, both of which used crypto for payments.
• Asset Seizures: The NCET helped seize over $3 billion in illicit crypto funds between 2021 and 2024, setting records in federal asset recovery relating to digital currencies.
• Exchange Investigations: The unit was also key to investigations into digital asset platforms linked to money laundering and fraud, such as Bitfinex and Tornado Cash.

In many respects, the NCET laid the foundation for how U.S. federal agencies can interact with blockchain technology and facilitated cooperation with allies abroad in tackling transnational crypto crime.

The DOJ’s New Crypto Crime Strategy Moving Forward

With crypto no longer a fringe technology but a major player in global finance, the DOJ’s forward-facing strategy reflects the seriousness of digital asset oversight.

Here’s what we can expect moving forward:

• Deeper Public-Private Collaboration: Government agencies will work more closely with blockchain analytics firms and crypto exchanges to identify suspicious transaction patterns and illicit activity.
• Stronger International Partnerships: The global nature of cryptocurrencies means improved collaboration with Interpol, Europol, and counterpart prosecution offices abroad.
• Enhanced Training & Technology: Leveraging AI, big data, and machine learning, DOJ teams will be better equipped to track illicit funds across a decentralized web of wallets and mixing services.

Deputy Attorney General Monaco reiterated in her comments that the fight against criminal abuse of digital assets is far from over—and that this latest structural update signals the DOJ’s confidence in scaling up its approach.

What This Means for Crypto Regulation in the U.S.

While the DOJ’s structural change doesn’t directly alter crypto regulations, it may influence how future policymaking develops. Regulators often coordinate decisions with enforcement feedback, so embedding crypto expertise across more departments could result in more nuanced regulatory frameworks.

Potential regulatory developments ahead:

• Crypto AML frameworks: Enhanced anti-money laundering legislation tailored for decentralized finance (DeFi) platforms and mixing services.
• Updates to SEC and CFTC roles: Further clarification on which tokens qualify as securities vs. commodities to aid prosecutors in choosing applicable laws.
• Data privacy considerations: Revised protocols for digital wallet surveillance and user data collection to protect civil liberties during investigations.

As digital assets become more integrated into financial infrastructure, this DOJ shake-up could pave the way for a more cohesive federal approach to regulation, enforcement, and innovation.

Conclusion: Evolution Rather Than Elimination

The shutdown of the National Cryptocurrency Enforcement Team doesn’t mark a withdrawal from crypto enforcement—it marks a transformation. By transitioning investigations and policy development into wider DOJ units, the government seems poised to tackle the growing complexity of blockchain-based crimes with greater agility.

Ultimately, this restructure sends a clear message: cryptocurrency crime enforcement in the U.S. is not going away—it’s scaling up. With a broader institutional backbone and more integrated processes, the DOJ appears ready to face the future challenges of a rapidly digitizing financial world.