Justice Department Shifts Focus to Cartels and Terrorists in Cryptocurrency Crackdown

The U.S. Justice Department is refocusing its efforts from regulating the cryptocurrency sector to investigating criminal activities by cartels and terrorist groups using digital currencies. This move, prompted by Deputy Attorney General Todd Blanche, aligns with one of Trump's executive orders and marks a shift from Biden's administration's approach.

The U.S. Justice Department is disbanding its National Cryptocurrency Enforcement Team in a strategic shift announced in a memo obtained by Reuters. The department will now prioritize criminal cases involving cartels and terrorist groups leveraging digital currencies for illicit activities, according to Deputy Attorney General Todd Blanche.

The decision comes as a reversal of the previous administration's strategy, which Blanche criticized as 'reckless regulation by prosecution'. The new directive emphasizes pursuing individuals exploiting digital assets for criminal purposes, such as terrorism and organized crime, suggesting ongoing investigations inconsistent with these goals should be halted.

Blanche, a former defense attorney for President Donald Trump, referenced a Trump executive order advocating open access to blockchain networks. Consequently, the Justice Department will cease targeting virtual currency exchanges for unwitting regulatory violations unless willful misconduct is proven.

(With inputs from agencies.)