Making Crypto Safer, Not Smaller
Blanche’s directive doesn’t mean a free-for-all in crypto. The department will continue targeting malicious uses of digital assets, especially where investors are defrauded or crypto is used to fuel broader criminal enterprises — from drug cartels to terrorist networks.
The priority cases going forward include:
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Rug pulls (where developers abandon projects and abscond with funds),
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Hacks and cyber intrusions,
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Ponzi-like crypto schemes, and
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Crypto used in organized crime or terrorism.
But in a striking twist, prosecutors are told to avoid charging violations tied solely to crypto regulation, such as unlicensed money transmission or BSA violations, unless clear, willful misconduct is present.
DOJ Eyes Legislative Fixes for Fairer Recoveries
The DOJ isn’t just chasing criminals — it’s pushing for policy changes to make crypto crime victims whole.
In a section of the memo aimed at justice beyond punishment, Blanche directed the Office of Legal Policy and Office of Legislative Affairs to explore regulatory reforms ensuring that defrauded investors recover the full value of their crypto holdings, including gains lost to crime or bankruptcy delays.
“No more settling for the value of your Bitcoin when it was stolen,” the memo essentially promises. “Victims deserve today’s price — not yesterday’s pain.”
