DOJ Official Held Up to $470K in Crypto During Policy Shift
Six U.S. senators have formally challenged Deputy Attorney General Todd Blanche over his decision to shut down the Department of Justice’s (DOJ) national cryptocurrency enforcement team in April 2025. In a letter dated January 28, the senators allege a significant conflict of interest, noting that Blanche held personal cryptocurrency investments valued between $158,000 and $470,000 when he ordered the unit's dissolution. The holdings, primarily in Bitcoin and Ethereum, were declared just days before the presidential inauguration on January 21, 2025.
The senators highlighted that Blanche did not sell his crypto assets until May 31, 2025, nearly a month after his April 7 memo that scaled back the task force. They argue this timeline "calls into question your own motivations" and suggests a potential violation of federal law, which prohibits government employees from participating in matters affecting their personal financial interests. The letter asserts that, at a minimum, Blanche "should have recused" himself from the decision.
Shutdown Coincides with 145% Rise in Illicit Crypto Activity
The senators' challenge is amplified by a reported surge in criminal use of digital assets. Citing a TRM Labs report, the letter states that illicit crypto activity grew by 145% in 2025 to a record high of $158 billion. This figure includes $2.87 billion stolen across nearly 150 separate hacks during the year. The senators argue that the DOJ's "hands-off approach" directly undermines efforts to combat sanctions evasion, drug trafficking, and other serious crimes.
In his defense, Blanche previously stated that the DOJ is not a "digital assets regulator" and criticized the prior administration for pursuing a "reckless strategy of regulation by prosecution." The crypto enforcement task force was originally established in 2022 and was responsible for high-profile cases, including the investigation that led to Binance founder Changpeng Zhao pleading guilty to anti-money-laundering violations in 2023. The senators contend that dismantling this experienced unit was a "grave mistake."
