Key Takeaways
- The National Cryptocurrency Enforcement Team (NCET) was set up by the US Department of Justice (DOJ) to track down criminal activities and organizations.
- The DOJ, despite disbanding the NCET, continues to remain alert to criminal activities in the blockchain space.
- A collective effort is required for the DOJ to track and address crime in the blockchain space, as it continues to battle hacks and illegal transactions.
The cryptocurrency space has faced many setbacks in the past, and this has come from the government. A key reason for such movement against the use of cryptocurrency is that many individuals, businesses, and organizations use digital assets to perpetrate criminal activities, as the use of digital assets on the blockchain makes it a challenge to trade.
This has led to many countries forming agencies and task forces that address the criminal activities present in the blockchain space. One such agency or task force, the National Cryptocurrency Enforcement Team (NCET), was set up by the US Department of Justice (DOJ), charged with tracking down criminal activities and organizations. Is this task force still functional?
The National Cryptocurrency Enforcement Team (NCET) – What it Means
The National Cryptocurrency Enforcement Team (NCET) was a specialized unit within the U.S. Department of Justice (DOJ) given the responsibility under the Biden administration to investigate, prosecute, and track down criminal misuses of digital assets or virtual currencies as a result of its complex uses in the blockchain space.
While this small department was set up to track complex issues related to virtual currencies, on April 7, 2025, the Department of Justice under Deputy Attorney General Todd Blanche issued a memorandum directing the agency to end “regulation by prosecution,” thereby disbanding the National Cryptocurrency Enforcement Team (NCET).
However, the DOJ still reiterated that the department is focused on tracking crime linked to cryptocurrency, such as fraud, terrorism, drug trafficking, human trafficking, cybercrime, and organized crim,e where digital assets are used as a tool.
How Does this Affect Crime Tracking by the DOJ?
The cryptocurrency industry continues to see tremendous growth; however, this growth has emerged with increased crime and sophisticated systems. This has forced the DOJ to focus its attention on the following crime involving the use of cryptocurrencies:
- Fentanyl and countering drug trafficking – As new technologies emerge and AI rallies higher in adoption, cryptocurrency has become a tool used globally, from precursor manufacturers and drug forums to darknet markets.
- Organized crime and cartel activity – Cryptocurrency is used by organized criminal syndicates and cartels for money laundering, asset transfers, and reinvestment in illicit activities.
- Terrorism financing – An array of terrorist organizations have used digital assets to raise and transfer funds. The DOJ is focused on tracking and dismantling these groups.
- Human trafficking and smuggling – The rise of digital assets in human trafficking and smuggling operations is a growing challenge. The pseudonymity of cryptocurrency appeals to traffickers, but the transparency of blockchain is turning this against them.
- Cybercrime and computer intrusions – Cybercriminals continue to use cryptocurrency for ransomware, hacking, and other cyberattacks.
Why the Effort by DOJ Matters
Blockchain adoption is rapidly growing each day as the financial system explores ways to harness its potential. While the benefits of using cryptocurrencies remain high, these tools are used by many organizations for all forms of crime, making digital currency literacy important.
With billions of transactions carried out on the blockchain each day, and a small fraction of them found to involve illegal activity, the DOJ is putting in place regulations to help tackle criminal activities perpetrated through the use of digital currencies.
Importantly, compliance with AML/KYC remains essential for using centralised exchanges in the cryptocurrency space. The DOJ’s commitment to prosecuting criminal activity remains unchanged, as does the National Cryptocurrency Enforcement Team (NCET).
FAQs
What is the national cryptocurrency enforcement team?
The National Cryptocurrency Enforcement Team (NCET) was a specialized unit within the U.S. Department of Justice (DOJ) given the responsibility under the Biden administration to investigate, prosecute, and track down criminal misuses of digital assets or virtual currencies as a result of its complex uses in the blockchain space.
How do I get my money back from cryptocurrency?
While cryptocurrency payments have gained widespread adoption due to their cross-border capabilities, funds lost can only be recovered if the receiver decides to send the money back to the sender’s account.
Can the government freeze your crypto account?
Only cryptocurrency exchanges and stablecoin issuers have the facilities to work with law enforcement agencies to freeze an account upon sufficient conclusion that the account is involved in a crime related to money transactions.
Can police trace crypto transactions?
The Blockchain technology has been designed for transparency, allowing permanent, public transactions to be stored on the blockchain ledger, creating an undeniable trail that makes it a powerful tool for law enforcement to track and seize illicit funds.
Other Read
How to Cash Out Crypto in Nigeria (2026 Guide)
How to Send Money to South Africa Using Crypto
