Senators: “At the very least, you had a glaring conflict of interest and should have recused yourself.”
~ Letter follows ProPublica investigation into Deputy AG Blanche’s crypto holdings ~
WASHINGTON, D.C. – Today, U.S. Senators Mazie K. Hirono (D-HI), Elizabeth Warren (D-MA), and Dick Durbin (D-IL) led three of their colleagues in a letter to Deputy Attorney General Todd Blanche, pressing him on his decision last year to disband the Department of Justice’s (DOJ) National Cryptocurrency Enforcement Team (NCET) and terminate investigations and prosecutions into the tools used to facilitate cryptocurrency crime, in light of recent reporting that he held more than $150,000 in cryptocurrency at the time of the decision.
The letter follows a recent investigation into Blanche after reports that he broke federal conflict-of-interest law when he ordered changes to crypto prosecutions that would benefit the industry, while owning at least $158,000 in cryptocurrency. Last year, Senators Hirono, Warren, and Durbin led a letter to Blanche following these changes, urging him to reverse his decision.
“Last year, we asked for the rationale behind your puzzling decision to scale back the Department of Justice’s (DOJ) cryptocurrency enforcement efforts and urged you to reconsider. We write now in light of recent reporting that you held substantial amounts of cryptocurrency at the time you made this decision,” wrote the senators. “At the very least, you had a glaring conflict of interest and should have recused yourself.”
The senators emphasize that in their previous letter, they had warned that disbanding the NCET and taking a hands-off approach to the tools that criminals use to obscure their uses of cryptocurrency would support further criminal activity such as sanctions evasion, drug trafficking, scams, and child sexual exploitation.
“Unfortunately, our predictions have proven correct, with illicit cryptocurrency activity soaring 162% in 2025,” continued the senators. “This increase was driven primarily by a dramatic rise in the receipt of cryptocurrency by sanctioned entities, but most categories of crypto crime saw increases, including human trafficking and other violent crime. Moreover, Chinese money laundering networks—to which the Trump Administration has drawn attention for moving billions for Mexican drug cartels—have now emerged as a ‘dominant force’ in the digital asset ecosystem.”
The senators write that President Trump and his family’s interest in selling their cryptocurrency, as well as Blanche’s own crypto holdings, called into question the motivation behind Blanche’s decision to ease law enforcement scrutiny of cryptocurrency-related crimes last year.
“But the fact that you held substantial amounts of cryptocurrency at the time you made this decision calls into question your own motivations,” concluded the senators.
The senators seek Blanche’s communications and documentation regarding the handling of his cryptocurrency holdings and related conflicts of interest prior to and at the time of his decision to scale back DOJ’s cryptocurrency enforcement efforts, by no later than February 11, 2026.
In addition to Senators Hirono, Warren, and Durbin, the letter is also signed by Senators Sheldon Whitehouse (D-RI), Chris Coons (D-DE), and Richard Blumenthal (D-CT).
The full text of the letter is available here and below.
Dear Deputy Attorney General Blanche:
Last year, we asked for the rationale behind your puzzling decision to scale back the Department of Justice’s (DOJ) cryptocurrency enforcement efforts and urged you to reconsider. We write now in light of recent reporting that you held substantial amounts of cryptocurrency at the time you made this decision. Your actions may be a violation of 18 U.S.C. § 208(a). At the very least, you had a glaring conflict of interest and should have recused yourself.
We warned in our prior letter that disbanding the National Cryptocurrency Enforcement Team and taking a hands-off approach to the exchanges, mixers, and other tools that criminals use to obscure the sources and uses of their cryptocurrency were “grave mistakes that will support sanctions evasion, drug trafficking, scams, and child sexual exploitation.” DOJ’s perfunctory response to our letter promised that prosecutors would target criminals using cryptocurrency in furtherance of their crimes. Unfortunately, our predictions have proven correct, with illicit cryptocurrency activity soaring 162% in 2025. This increase was driven primarily by a dramatic rise in the receipt of cryptocurrency by sanctioned entities, but most categories of crypto crime saw increases, including human trafficking and other violent crime. Moreover, Chinese money laundering networks—to which the Trump Administration has drawn attention for moving billions for Mexican drug cartels—have now emerged as a “dominant force” in the digital asset ecosystem.
We noted that “[y]our decisions give rise to concerns that President Trump’s interest in selling his cryptocurrency may be the reason for easing law enforcement scrutiny.” Certainly, President Trump’s financial interests seem to have motivated some of his pardons of criminals convicted of cryptocurrency-related crimes. But the fact that you held substantial amounts of cryptocurrency at the time you made this decision calls into question your own motivations. The timeline of events is clear:
As noted above, your decision to direct this change in DOJ policy favorable to the cryptocurrency industry while holding substantial amounts of cryptocurrency appears to have violated 18 U.S.C. § 208(a). This provision generally prohibits an executive branch employee from “participat[ing] personally and substantially” in a “decision . . . or other particular matter in which, to his knowledge, he . . . has a financial interest.” Willful violations of this provision are punishable by up to five years in prison. Your conduct is now the subject of a complaint to DOJ’s Office of the Inspector General.
We have a constitutional obligation to perform oversight over the Department of Justice and its personnel and policy decisions. To that end, please preserve all relevant documents and communications, answer the following questions, and provide the requested information:
Proper enforcement of our nation’s laws against criminals using cryptocurrency is of vital importance. To that end, we request answers to these questions and production of the requested materials as soon as possible and no later than February 11, 2026.
Sincerely,
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