The U.S. Department of Justice’s decision to dismantle the NCET will aid in sanction evasion and fraud, according to a letter addressed to Attorney General Todd Blanche from a group of senators.
The appeal was sent by Elizabeth Warren, Richard Durbin, Mazie Hirono, Sheldon Whitehouse, Christopher Coons, and Richard Blumenthal.
The senators described the Justice Department’s actions as a “serious mistake.”
They argue that it creates a “systemic vulnerability in the digital asset sector,” which “drug traffickers, terrorists, fraudsters, and adversaries” will exploit on a large scale. Mixers are considered the primary tool for this category of individuals, according to the lawmakers.
The letter also mentions cryptocurrency projects linked to the family of former U.S. President Donald Trump, suggesting a “potential connection” between them and the department’s actions.
The senators demanded a briefing to clarify the Justice Department’s decisions by May 1.
NCET was established in 2021 under the Biden administration. The unit was involved in major crypto investigations, including the case against the mixer Tornado Cash and the hack of the Mango Markets protocol. The group also handled cases of digital asset theft by North Korean hackers.
On April 7, media reported the closure of NCET, citing a memo from Deputy Attorney General Todd Blanche.
According to the new directive, Justice Department staff will no longer pursue actions against crypto exchanges, mixers, and offline wallets. Instead, the focus will shift to combating fraudsters using digital assets and those causing real harm to investors.
Earlier, Congress called for the shelving of a plan to create a Bitcoin reserve.