DOJ crypto theft task force proposed a year after NCET shutdown

The group would focus on operational work, not rulemaking. That includes developing best practices for collecting digital evidence, tracing stolen assets, improving investigative techniques, and assisting victims of crypto-related crimes. Support for state and local authorities is central to the proposal, with technical guidance, training programs, and information-sharing extending to prosecutors and law enforcement at all levels. International coordination would target cross-border fund movement cases.

The legislation surfaces a little over a year after the Justice Department dismantled NCET. In an April memo first reported by Fortune, Deputy Attorney General Todd Blanche ordered the unit's immediate closure and said the department would end what he described as "regulation by prosecution" of the crypto sector. The memo directed prosecutors to reduce resources spent on cases involving exchanges, mixing services, and wallet providers, and instead focus on individuals who use digital assets to commit crimes or harm investors.

Created during the Biden administration, NCET brought together prosecutors from the DOJ's money laundering and cybercrime divisions and coordinated several of the country's most prominent crypto investigations. Its caseload included the prosecution of Tornado Cash and co-founder Roman Storm, who faces charges tied to money laundering, sanctions violations, and operating an unlicensed money-transmitting business. The case became a flashpoint inside the industry, where many argued software developers were being held criminally liable for how users employed their code. NCET also led investigations into North Korean laundering networks connected to crypto theft and prosecuted Avraham Eisenberg over the $114 million exploit of Mango Markets.

The FBI's 2025 Internet Crime Report provides some of the rationale. Alongside the 181,565 crypto-related complaints and more than $11 billion in reported losses, the bureau recorded nearly $21 billion in total cyber-enabled losses. Lawmakers behind the bill argue that victims of wallet thefts, phishing attacks, exchange exploits, and other crypto crimes often encounter fragmented responses across local, federal, and international agencies. The proposal tries to fix that with a dedicated coordination hub, concentrating expertise without expanding federal oversight of crypto markets.

The bill has been referred to the House Judiciary Committee. No hearing date has been set.