Sens. Mazie Hirono, Richard Durbin, Elizabeth Warren, Sheldon Whitehouse, Chris Coons, and Richard Blumenthal wrote that Deputy Attorney General Todd Blanche had a conflict of interest, framing it as a governance lapse, and should have recused himself when DOJ scaled back crypto enforcement and disbanded the National Cryptocurrency Enforcement Team.
The letter cites reporting that Blanche held crypto at the time and says this may implicate 18 U.S.C. § 208(a). It lists disclosed holdings of $158,000 to $470,000 on Jan. 18, 2025, a Feb. 10 pledge to divest, an April 7 memo shifting policy, and sales or transfers from May 31 to June 3. The senators also cite a 162% rise in illicit crypto activity in 2025 and warn a hands-off approach to exchanges and mixers can fuel sanctions evasion, drug trafficking, scams, and child sexual exploitation.
They asked DOJ to preserve records and answer oversight questions by Feb. 11, 2026, including how a Jan. 23, 2026 statement that the issue was “flagged, addressed, and cleared” was vetted, and said a complaint was filed with DOJ’s Office of the Inspector General.
Source: U.S. Senators’ letter to Deputy Attorney General Todd W. Blanche.
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