The U.S. Justice Department is disbanding its National Cryptocurrency Enforcement Team and ordering prosecutors to narrow crypto investigations to focus on drug cartels and terrorist groups, according to a memo seen by Reuters.
The memo from Deputy Attorney General Todd Blanche, sent out to employees late on Monday night, accused former Democratic President Joe Biden's administration of pursuing a "reckless strategy of regulation by prosecution" of the digital asset sector.
The unit, known as NCET and launched in February 2022 as part of the administration's bid to combat fraud and illicit finance, investigated and coordinating cases including one against Binance and its founder Changpeng Zhao, who pleaded guilty to violating laws designed to prevent money laundering.
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