The Department of Justice has officially disbanded its cryptocurrency enforcement division, halting prosecution of crypto-related fraud unless it involves direct links to terrorism or major criminal networks. The decision arrives as President Donald Trump and former First Lady Melania Trump continue profiting from their personal crypto ventures—both of which have been flagged by analysts as potential pump-and-dump operations.

Deputy Attorney General confirmed the DOJ will no longer pursue regulatory cases against crypto platforms or tokens that violate federal rules unknowingly. The National Cryptocurrency Enforcement Team has been dissolved, and existing investigations are being closed or transferred. “We are reallocating our focus,” Blanche said in a statement.

Critics say the realignment is less about efficiency and more about shielding the President’s financial interests.

Trump’s coin, $TRUMP, launched in January 2025 through CIC Digital LLC, quickly reached a $14 billion market cap, with a majority of supply held by Trump-linked wallets. Melania Trump’s token, $MELANIA, has similarly drawn scrutiny for ties to known scam developers and dramatic valuation swings.

Legal experts and ethics watchdogs warned the policy shift will make it nearly impossible to hold politically connected crypto actors accountable. “This isn’t about cleaning up crypto—it’s about letting powerful people walk away with the bag,” said one former federal prosecutor.

The change in enforcement posture effectively protects the Trump family’s ongoing crypto operations from any regulatory scrutiny. Taxpayer groups and anti-corruption advocates are calling for congressional intervention.

As regulatory oversight collapses, the Trumps’ crypto tokens continue trading on major platforms without disclosure requirements, fraud protections, or legal risk. The DOJ’s move has been widely condemned by financial watchdogs as the formal surrender of U.S. crypto accountability.