In a significant policy shift, the U.S. Department of Justice (DOJ) has disbanded its National Cryptocurrency Enforcement Team (NCET) and will no longer pursue criminal actions against cryptocurrency exchanges, crypto mixing services, or holders of cold wallets for regulatory violations unless they involve severe crimes like embezzlement or hacks. This change was announced in a memo from Deputy Attorney General Todd Blanche. Additionally, in cases where criminal enterprises, such as those linked to North Korea, utilize crypto platforms for illicit purposes, the DOJ will only focus on the criminal organizations and not the platforms used for their activities. This decision comes after past scrutiny aimed at crypto mixing services like Tornado Cash, which have faced legal actions over their potential use in money laundering. The memo indicates that the DOJ's new stance aligns with a directive from the Biden administration aimed at protecting access to public blockchains. This marks a departure from the previous administration’s enforcement strategy, which the DOJ criticized as excessive and misdirected.

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