US DOJ’s Shocking Decision: Crypto Criminals Rejoice! 🎉

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It is with a mixture of astonishment and amusement that one learns of the recent proclamation from the esteemed U.S. Department of Justice (DOJ), which has declared its intention to cease the pursuit of criminal cases against those engaged in the curious world of cryptocurrency. Indeed, exchanges, developers, and users alike may now breathe a sigh of relief, for the long arm of the law has chosen to withdraw its grasp from their digital pursuits.

This momentous decision follows the disbanding of the National Cryptocurrency Enforcement Team (NCET), a rather specialized assembly that had dedicated itself to the noble cause of policing crypto-related misdeeds. One might wonder if they were merely chasing shadows in a realm where the only certainty is uncertainty.

A Shift In Focus

In a memo, which I daresay was penned with a flourish, Deputy Attorney General Todd Blanche confirmed that this new directive was to take effect immediately. The document, which was later disseminated by the ever-enthusiastic Amanda Tuminelli, executive director of the DeFi Education Fund, has surely caused quite the stir among those who fancy themselves as guardians of the digital realm.

Mr. Blanche, in his infinite wisdom, proclaimed that the DOJ shall no longer squander its resources in the futile endeavor of regulating digital assets through the heavy hand of criminal prosecution. “The Department of Justice is not a digital assets regulator,” he declared, as if the previous administration’s “reckless strategy of regulation by prosecution” were but a whimsical folly of youth.

Furthermore, the memo elucidated that the DOJ would henceforth refrain from pursuing litigation or enforcement actions against crypto exchanges, mixing services, and offline wallets for the unintended transgressions of their users. One can only imagine the sighs of relief echoing through the halls of these establishments!

Specifically, staff were instructed to abandon any thoughts of charging regulatory violations tied to the Bank Secrecy Act (BSA) or any other such trifles in the realm of crypto. Instead, the agency shall now direct its efforts towards prosecuting those dastardly individuals who dare to victimize digital asset investors or employ cryptocurrency for nefarious purposes such as terrorism, human trafficking, and the like. How noble!

Moreover, the official has commanded the closure of ongoing investigations that do not align with this newfound policy, as if to say, “Let us not waste our time on trivial matters!” The DOJ shall now collaborate with its criminal division to ensure that enforcement remains consistent, whatever that may mean in this ever-evolving landscape.

NCET’s Involvement in High-Profile Crypto Cases

The NCET had previously taken part in several high-profile cases, including the prosecution of Tornado Cash, an Ethereum-based mixing service that, one might argue, was merely a victim of its own popularity. In 2023, the DOJ arrested Roman Storm, one of the platform’s developers, on charges of money laundering and sanctions violations. The controversy surrounding this case was palpable, with Storm asserting that the platform had no intention of aiding criminal actors, as it was, after all, a permissionless service. How very convenient!

Another notable escapade involved the Samourai Wallet, a privacy-focused Bitcoin wallet accused of enabling unlicensed money transmission. Despite the product being a non-custodial service that does not control user funds, lawmakers claimed that its coin-mixing features were employed to conceal illicit transactions. One cannot help but chuckle at the irony of it all!

This is not the first instance of a federal crypto task force being disbanded under the current administration. In January, following an executive order by President Trump, the Commodity Futures Trading Commission (CFTC) also downsized its crypto-focused enforcement teams, leaving but two groups to handle the complexities of digital asset-related matters. Truly, one must wonder what the future holds for this curious and ever-changing domain!

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2025-04-10 00:18