Crypto Chain Abstraction, Powered by LI.FI

Four years after the US Department of Justice has established its cryptocurrency scam unit and watchdog, it is now disbanding the team as it tries to align with what the Trump administration wants for blockchain.

Over the past years, this specific unit has focused on going against the use of crypto for different crimes, including fraud, theft, and more.

Moreover, the unit has been successful in several high-profile cases against crypto exchange platforms for their different malpractices in the use of the decentralized finance for nefarious activities.

US DOJ Disbands NCET Crypto Scam Unit

Reuters reported that a new memo from the DOJ has confirmed that it is disbanding the four-year-old National Cryptocurrency Enforcement Team (NCET). The news was shared by Deputy Attorney General Todd Blanche, with the Justice department now shifting its focus to a more crypto-friendly direction as is what the Trump administration wants.

Previously, the NCET focused on prosecuting cryptocurrency scams, which includes fraud, money laundering, and theft, with the team able to win several cases against crypto platforms like Binance, Bitfinex, and Tornado Cash.

This also goes alongside the newfound direction of the US Securities and Exchange Commission (SEC), which has stepped back on its crypto regulations focus, for a more welcoming experience for blockchain.

New Focus of DOJ's Crypto Enforcement

Blanche revealed in the memo that the Justice Department will focus on new ways to enforce against illegal crypto operations, which centers on individuals who are victimizing digital asset investors or those that use crypto for crimes. These acts of crime include terrorism, human trafficking, narcotics, hacking, organized crime, gang financing, and more.

It was revealed by the Deputy Attorney General that anything that is outside of the said scope "should be closed."

That being said, there are still massive risks tied to the cryptocurrency industry, particularly crypto scam activities that happen daily, in both domestic and foreign levels, according to Engadget.

Trump's Crypto-Friendly Focus

One of the most significant promises of Trump's campaign for presidency is his fostering of the cryptocurrency industry for America and its citizens, expressing his desire to make the country the "capital" of the blockchain market.

During his rise to power, the market saw an exponential growth towards new all-time highs, and last month, President Trump unveiled the US "Strategic Reserve" initiative, which also helped prices to skyrocket.

There has been scrutiny against the cryptocurrency industry over the past years, and many companies like Coinbase and more have complained that the lack of regulatory clarity is implicating them for alleged crimes. Thanks to Trump, the Securities and Exchange Commission (SEC) has dropped the lawsuit against Coinbase regarding alleged illegal securities exchanges.

Apart from transforming the United States as the crypto capital of the world, Trump has also focused on making Bitcoin, the world's top grossing cryptocurrency, as a "superpower," but he has not yet revealed the plans for it.

Furthermore, Trump has already mobilized certain advancements for crypto, such as his previous executive order for a working committee towards regulations.

Originally published on Tech Times

Donald trump Trump