BlockBeats News: On January 29, six U.S. senators, including Mazie K. Hirono, Elizabeth Warren, and Richard Durbin, wrote a letter to Deputy Attorney General Todd Blanche on January 28, questioning his decision to disband the Department of Justice's (DOJ) National Cryptocurrency Enforcement Team (NCET) in April 2025. The senators pointed out that although Todd Blanche claimed the DOJ should not serve as a regulator of digital assets, he himself holds between $158,000 and $470,000 worth of cryptocurrency, which constitutes a clear conflict of interest and may violate federal laws regarding personal financial interests. The senators previously described the closure of the team as a "serious mistake," arguing that it would facilitate criminal activities such as sanctions evasion, drug trafficking, and fraud.
Cited data from the letter shows that illicit cryptocurrency activities surged by 162% in 2025, primarily driven by a significant increase in cryptocurrency received by sanctioned entities, with money laundering networks becoming a "dominant force" in the digital asset space. The senators believe Todd Blanche's actions may have violated 18 U.S.C. § 208(a) of federal law, which prohibits personal financial interests from influencing official decision-making. Currently, Todd Blanche has been listed as a subject of a complaint by the Office of the Inspector General at the Department of Justice (DOJ).