The U.S. Department of Justice has dismantled its National Cryptocurrency Enforcement Unit (NCET), coinciding with the team behind the MELANIA memecoin quietly offloading $30 million worth of coins from community funds. This move raises questions about ethical concerns and timing, especially considering Trump’s involvement in the crypto market.
A Shift in Strategy
In a memo, Todd Blanche, Deputy Attorney General under the Trump administration and Trump’s former defense attorney, stated that the DOJ informed its staff on Monday about the disbanding of its cryptocurrency investigations unit.
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According to a memo, the DOJ is now instructing federal prosecutors to focus on fraud protection for investors rather than targeting platforms like exchanges or privacy tools.
The unit was responsible for investigating cryptocurrency crimes, including money laundering and cybercrime, since 2021.
It played a key role in high-profile cases, such as the crackdown on Tornado Cash, a privacy-focused crypto mixer accused of laundering over $1 billion, and the prosecution of hacker Avraham Eisenberg, who was convicted in April 2024 for manipulating the market in a $110 million scheme.
From Enforcement to Investor Protection
The closure of the NCET reflects a shift in U.S. cryptocurrency regulation. Under the Biden administration, the government took a strong stance, focusing on cryptocurrency developers and privacy services, raising concerns within the crypto community about overregulation.
Now, under the Trump administration, the focus has shifted to protecting individual investors from fraud, with a new emphasis on prosecuting criminal activities that directly affect users instead of regulating platforms facilitating transactions.
A Broader Shift in Regulatory Approach
The dismantling of the NCET fits into a broader trend to reduce oversight of the crypto sector. Executive orders have already loosened restrictions on the SEC and CFTC, signaling a regulatory environment more conducive to crypto growth.
Trump has long advocated for policies that favor crypto industry players, promising a more favorable environment during his presidential campaign.
Ethical Concerns and Trump’s Crypto Moves
The timing of the DOJ’s decision has sparked mixed reactions.
As podcaster Tim Miller noted on X: “The president is running a crypto scam where he can receive millions of dollars anonymously. Meanwhile, the DOJ has shut down the crypto investigations unit. Truly no corruption scheme like this in our history, at least out of the White House.”
The DOJ’s move followed closely after the team of MELANIA memecoin, linked to First Lady Melania Trump, sold $30 million worth of coins, according to blockchain analytics firm Bubblemaps.
The MELANIA token, launched in January after Trump’s inauguration, briefly surged above $12 before crashing, mirroring the trajectory of Trump’s Official Trump (TRUMP) meme coin. The latter peaked above $72 before dropping to $7.9 in April.
Entities tied to Trump reportedly gained nearly $100 million in trading fees within just two weeks, amplifying ethical concerns about potential conflicts of interest in his crypto ventures.
Why This Matters
The dismantling of the DOJ crypto investigation unit marks a pivotal shift in U.S. crypto regulation, raising broader questions about the intersection of policy and personal interest—especially as figures like Trump remain close to the action.
