Senators Challenge DOJ’s Dissolution of Crypto Enforcement Team Amid Rising Illicit Activity

U.S. Senators are intensifying scrutiny over Deputy Attorney General Todd Blanche's controversial decision to disband the National Cryptocurrency Enforcement Team. A January 28, 2026 letter alleges Blanche violated conflict-of-interest laws (18 U.S.C. § 208(a)) by holding substantial crypto assets during the decision-making process.

The MOVE coincides with a 162% surge in illicit crypto activity during 2025, particularly involving sanctioned entities and cross-border money laundering networks. Chinese operatives funneling billions for Mexican cartels have reportedly become a dominant force in crypto-based financial crime.

Political undertones emerge as the letter suggests former President Trump's crypto divestment plans may have influenced enforcement policy. The dissolution leaves a regulatory vacuum at a time when blockchain analytics show marked increases across most categories of crypto-related crime.