Blanche Killed Crypto Enforcement While Holding $159K in Crypto. Now He Runs the DOJ and Created a “Fraud” Division.

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On April 7, 2025, Todd Blanche — then Deputy Attorney General, now acting Attorney General — issued a memo titled “Ending Regulation by Prosecution.” It disbanded the National Cryptocurrency Enforcement Team, a unit that had won multiple high-profile crypto fraud convictions under Biden. It halted ongoing investigations into crypto companies, dealers, and exchanges. It announced the DOJ would stop going after the platforms that enabled crypto fraud and would only target individual terrorists and drug traffickers. Financial records later revealed by ProPublica showed that at the time he signed that memo, Blanche held at least $159,000 in cryptocurrency-related assets.

The Conflict

Blanche’s ethics agreement was explicit. He would divest his cryptocurrency holdings within 90 days and would not participate in any matter that could have a “direct and predictable effect” on his financial interests in virtual currency until they were sold. He was confirmed March 6. He signed the enforcement-killing memo on April 7 — 32 days later. His crypto was still in his portfolio.

A DOJ spokesperson told ProPublica that Blanche’s actions were “appropriately flagged, addressed and cleared in advance.” She did not say who cleared them. She did not provide documentation. The department did not respond to follow-up questions.

The six senators — Elizabeth Warren, Dick Durbin, Mazie Hirono, Sheldon Whitehouse, Christopher Coons, and Richard Blumenthal, five of whom sit on the Senate Judiciary Committee — demanded answers. They asked Blanche to provide, by February 11: any written determination he received about the legality of his crypto enforcement action; all his communications with ethics and DOJ officials about the issue; and any communications he had with the crypto industry before issuing the memo. The Campaign Legal Center, a nonpartisan watchdog, separately asked the DOJ Inspector General and the Office of Government Ethics to investigate whether Blanche violated federal conflict-of-interest statutes and lied on compliance forms.

What He Killed

The National Cryptocurrency Enforcement Team had been the DOJ’s primary weapon against crypto-related money laundering, fraud, and sanctions evasion. Under Biden, it won significant convictions and established the legal framework for treating crypto platforms as responsible for the criminal activity they hosted. Blanche’s memo condemned that entire approach as “a reckless strategy of regulation by prosecution, which was ill conceived and poorly executed.”

The senators warned at the time that killing the enforcement team would help sanctions evaders, drug traffickers, scammers, and child exploitation networks. In their January 2026 letter, they cited an independent report showing a surge in illicit cryptocurrency activity in 2025, including crimes tied to money laundering and human trafficking. The thing they said would happen happened.

And Now: The Fraud Division

On April 7, 2026 — exactly one year after issuing the memo that killed crypto enforcement — Blanche announced the creation of a National Fraud Enforcement Division. Its stated mission: “to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.” It will coordinate with agencies, partner with law enforcement, develop fraud-detection systems, and equip prosecutors with “state-of-the-art tools.”

The press release touted the division as supporting President Trump’s Task Force to Eliminate Fraud, chaired by JD Vance. The DOJ held a full press briefing. Blanche stood at the podium talking about accountability and enforcement. He did not mention that he personally defunded the last fraud enforcement team that was doing this work in the crypto space. He did not mention his own financial interest. He did not mention the six senators or the IG complaint.

At the April 7 press briefing, a reporter asked about the leaked information regarding the downed Air Force officer. Blanche’s response: “And we will investigate. If it means sending a subpoena to the reporter, that’s exactly what we should do and that’s exactly what we will be doing.” The acting Attorney General of the United States threatened to subpoena journalists for reporting on a war his boss started without congressional authorization.

This is the man running the Department of Justice. He killed an enforcement team to protect an industry he was invested in. He replaced Bondi because she wasn’t corrupt enough. He told Fox News the Epstein investigation is closed. He wants to subpoena reporters. And on the one-year anniversary of dismantling the crypto fraud unit, he created a new fraud division and told the country he’s the guy to fight corruption.

The conflict isn’t hidden. It’s the whole point. In this DOJ, the foxes don’t guard the henhouse. They build a new henhouse, name it the “National Fox Enforcement Division,” and hold a press conference about how safe the chickens are.

Sources

• ProPublica: Blanche owned at least $159,000 in crypto when he killed the enforcement team; six senators accused him of “glaring” conflict; ethics agreement required divestment within 90 days; Campaign Legal Center asked IG to investigate; DOJ claimed actions were “cleared in advance” but refused to say by whom.
• DOJ Press Release: Blanche announced National Fraud Enforcement Division on April 7, 2026; stated mission to investigate and prosecute misuse of taxpayer dollars; supports Trump’s Task Force to Eliminate Fraud.
• Wikipedia (Todd Blanche): Became acting AG April 2, 2026 after Trump fired Bondi; disbanded NCET April 2025; held several hundred thousand dollars in cryptocurrency; threatened to subpoena reporters; suggested ICE at polling places at CPAC March 2026.
• DOJ Press Briefing (YouTube): April 7, 2026 — Blanche outlined fraud enforcement strategy; threatened reporter subpoenas over leaks about downed Air Force officer; “If it means sending a subpoena to the reporter, that’s exactly what we should do.”

Related coverage

• EOH: Blanche claims DOJ released every Epstein file
• EOH: Trump fires Pam Bondi as AG
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