DOJ scales back efforts to fight cryptocurrency fraud

[Kale Carey]

THE DEPARTMENT OF JUSTICE IS PLANNING TO SCALE BACK ITS LEGAL FIGHT AGAINST CRYPTOCURRENCY FRAUD.

IN A MEMO OBTAINED BY THE WASHINGTON POST, DEPUTY ATTORNEY GENERAL TODD BLANCHE MADE THE ANNOUNCEMENT TO STAFF MONDAY SAYING THE D-O-J WILL NO LONGER PURSUE LITIGATION OR ENFORCEMENT ACTIONS RELATED TO REGULATORY ASPECTS OF DIGITAL ASSETS … ADDING PROSECUTORS SHOULD FOCUS ON CRIMES PEOPLE COMMIT WITH CRYPTOCURRENCY, SUCH AS DEALING NARCOTICS AND HUMAN TRAFFICKING.

BLANCHE ALSO SAID HE WOULD GET RID OF THE NATIONAL CRYPTOCURRENCY ENFORCEMENT TEAM –ESTABLISHED IN 2022 TO “ADDRESS THE CHALLENGE POSED BY THE CRIMINAL MISUSE OF CRYPTOCURRENCIES AND DIGITAL ASSETS.” 

THE CHANGE COMES AFTER PRESIDENT TRUMP ISSUED AN EXECUTIVE ORDER DIRECTING THE DEPARTMENT TO EVALUATE AND REGULATE GUIDELINES IMPACTING DIGITAL CURRENCY.

DURING HIS 20-24 CAMPAIGN TRUMP PROMISED TO EASE REGULATION AGAINST CRYPTO COMPANIES, LEADING TO BIG DONATIONS FROM TECH INVESTORS.

LAST MONTH, TRUMP PARDONED FOUR INDIVIDUALS INVOLVED WITH CRYPTOCURRENCY EXCHANGE, BITMEX.

THE FOUNDERS OF THE EXCHANGE PLEADED GUILTY IN 2022 FOR FAILING TO IMPLEMENT ANTI-MONEY LAUNDERING AND IDENTITY VERIFICATION SYSTEMS.

BLANCHE HAS NOW ORDERED ALL CURRENT OPEN INVESTIGATIONS WHICH DON’T FOLLOW THE D-O-J’S NEW GUIDELINES TO BE CLOSED.

FOR SAN, I’M KALÉ CAREY.

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