Latest news with #ExecutiveOrder14178
Mint
2 days ago
- Business
- Mint
Defence alert: Crypto is turning into a geopolitical weapon
"I am not a fan of Bitcoin and other cryptocurrencies… Unregulated crypto assets can facilitate unlawful behaviour." That was Donald Trump in 2019, when he still voiced concerns shared by central bankers, International Monetary Fund (IMF) economists and financial crime experts across the world. The consensus was clear: crypto, while technologically innovative, lacked both intrinsic value and sovereign backing, and undermined anti-money laundering regimes as well as monetary integrity. Fast forward to 2025. Better educated perhaps by the America crypto lobby's campaign cheques and the sweat equity gifted to his family, Trump, now US president again, recently signed Executive Order 14178. A stroke of the pen dismantled many of the regulatory guard-rails once deemed essential. Not long after, the Trump family entered the crypto business. One of their earliest strategic partners was Pakistan, a state associated with cross-border terrorism, shady finances and furtive fund diversion. Also Read: The triumph of crypto bros: Don't just shrug and move on What should India make of a superpower whose political leaders launch private currencies? Or of a country where former convicts are rehabilitated as strategic advisors to sovereign crypto councils? Are we witnessing a global power in search of infinite minting rights without democratic oversight but with the full cover of plausible deniability? Changpeng Zhao, former CEO of Binance, pleaded guilty to serious anti-money laundering failures, spent time in US custody and paid $4.3 billion for a settlement. His crypto exchange facilitated transactions for sanctioned groups like Hamas—flows that would never get past a regulated banking system. The Binance blow-up should have ended his financial career. Instead, he now advises Pakistan's official crypto task force. Justin Sun, whose firm invested $30 million in Trump-linked World Liberty Financial, was under investigation by the US Securities and Exchange Commission for civil fraud. Today, he is a front-row guest at US political fund-raisers. Are crypto dealings the new way to buy influence in the US? This seems like a gateway through which otherwise ineligible actors—be it individuals, regimes or rogue states—are quietly admitted into the global financial order, now that the need for institutional legitimacy appears to be receding behind the opacity that once resulted in exclusion. Also Read: Mint Quick Edit | De-dollarization: Trump should target crypto, not Brics It's a return to Cold War-style shadow financing, but with the support of blockchains instead of banks. So much for the superpower that lectures the world on clean governance. When financial opacity is rebranded as innovation, geopolitics takes on a new form we should all be wary of. The IMF and World Bank have been vocal in their concerns. The IMF has warned that widespread adoption of private cryptocurrencies threatens monetary sovereignty, enables illicit flows and undermines capital controls, especially in emerging markets. We saw disruptions in El Salvador, Nigeria, and Lebanon, where crypto experiments coincided with capital volatility and institutional erosion. Terror finance remains an enduring threat to global security. The Financial Action Task Force (FATF) has repeatedly highlighted how terrorist groups exploit crypto to bypass formal banking oversight. Yet, Pakistan has FATF clearance. For a country like India—on the front-line of cross-border terrorism—this is a real risk. Crypto has operationalized what could be described as 'eHawala': borderless transfers in real time that can stay hidden. A sovereign nation should not let private entities mint currency, however trendy or popular it proves. To its credit, the Reserve Bank of India saw this coming. Its resistance to private cryptocurrency is neither timidity nor technophobia—it is an assertion of monetary sovereignty. In today's world, capital flows can be weaponized. It is therefore a matter of national security to ensure such weapons are not aimed at us. Also Read: Trump's crypto reserve: An odd idea with a silver lining for the world Yet, the pressure to capitulate is mounting. Global crypto platforms, freshly repackaged as fintech innovations, have been pushing for softer regulation. In India, domestic actors have lobbied against India's high tax on crypto gains by arguing that crypto capital must be stopped from fleeing offshore. In matters of financial security, arguing that crypto should remain unchecked because conventional checks aren't flawless is not just illogical, but dangerously juvenile. Even if the US exerts diplomatic pressure, India mustn't oblige. Instead, India should put systems in place for crypto deterrence. Cutting-edge surveillance tools, forensic finance capabilities and offensive digital arsenals could be deployed against adversarial scenarios of crypto being used as a Trojan horse to destabilize our financial system. Just as strategic weapons are kept discreet, so must this. The future of finance may well be digital. But that future must be guided by sovereign plans, not determined by offshore hype or patronage games. In the crypto age, our sovereignty must be defended with the same strategic intent that we apply to borders, seas, airspace and cyberspace. Crypto is now a geopolitical instrument and potentially a vector of strategic harm. It needs to be viewed as a weaponizable tool, even as we secure our financial architecture from any threat it may pose. This is no longer a matter for committees to discuss. It is a political decision—one that cannot be deferred without consequences. The author is a corporate advisor and author of 'Family and Dhanda'
Yahoo
08-05-2025
- Business
- Yahoo
Justice Department shuts down its cryptocurrency fraud unit
WASHINGTON – The Justice Department has shut down its unit that investigates cryptocurrency fraud 'effective immediately,' even as the Trump administration ramps up its embrace of the emerging digital currency market, according to a memo by Deputy Attorney General Todd Blanche. In a memo sent Monday night, Blanche directed the closure of the National Cryptocurrency Enforcement Team and ordered prosecutors to pivot to investigating transnational criminal organizations and terrorist groups that use crypto to engage in illicit transactions. The move is one of several efforts by the Trump administration to scale back enforcement of white-collar and financial crimes and divert the resources to fighting drug traffickers and immigration-related human smugglers. In his four-page memo, Blanche said the new order was meant to bring the Justice Department in line with Trump's own Executive Order 14178, which decreed that clarity and certainty regarding enforcement policy "are essential to supporting a vibrant and inclusive digital economy and innovation in digital assets." Blanche, one of several Trump criminal defense lawyers at the top ranks of DOJ, said the president 'has also made clear that '[w]e are going to end the regulatory weaponization against digital assets.' " 'The Department of Justice is not a digital assets regulator,' Blanche wrote. 'However, the prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution, which was ill conceived and poorly executed.' Public corruption and transnational crime experts warned that shutting down the unit could divert critical resources from efforts to stop criminals and corrupt regimes from using cryptocurrency for illicit gain, even as Trump claims he wants to crack down on them. "Dangerous US adversaries rely on cryptocurrencies to launder money and evade sanctions," said Nate Sibley, an anti-corruption expert and director of the Kleptocracy Initiative at the conservative Hudson Institute think tank in Washington, D.C., in a post on X "If this is accurate, hard to see how it squares with – for example–cracking down on cartel finances or maximum pressure sanctions on Iran." Created in 2022 to address the challenges posed by cryptocriminals The National Cryptocurrency Enforcement Team (NCET) was established in February 2022 to address the challenge posed by the criminal misuse of cryptocurrencies and digital assets. According to its website, the team is composed of attorneys from across the Justice Department, including prosecutors with backgrounds in cryptocurrency, cybercrime, money laundering and forfeiture. It worked in close collaboration with components across the DOJ, as well as U.S. Attorneys' offices around the country and FBI crypto-crime specialists. One of its primary focuses was prosecuting the criminal use of digital assets with a particular focus on virtual currency exchanges and other entities that facilitate criminal activity. It also set strategic priorities regarding digital asset technologies and led the DOJ's efforts to coordinate with domestic and international law enforcement partners, regulatory agencies and private industry to combat the criminal use of digital assets. Letting Trump's 'actual regulators do this work' The deputy AG said the Justice Department will no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets 'while President Trump's actual regulators do this work outside the punitive criminal justice framework.' Instead, Blanche wrote, the DOJ will focus its investigations and prosecutions involving digital assets on going after individuals "who victimize digital asset investors" and those who try to use crypto to further criminal schemes like terrorism, narcotics and human trafficking, organized crime, hacking, and cartel and gang financing. Consistent with that narrowing of its cryptocurrency enforcement policy, the DOJ Market Integrity and Major Frauds Unit will also cease cryptocurrency enforcement to focus on other administration priorities, including immigration and procurement fraud, Blanche said. Also, the DOJ Criminal Division's Computer Crime and Intellectual Property Section will continue to provide guidance and training to Department personnel and serve as liaisons to the digital asset industry, according to Blanche's memo. Making the U.S. the 'crypto capital of the planet' President Donald Trump's executive order on cryptocurrency on Jan. 23 – his third day in office – sought to jumpstart government regulation that he said could help make the U.S. 'crypto capital of the planet.' On the campaign trail, Trump courted major players in the cryptocurrency sphere and promised to scale back what he considered to be overenforcement and regulation of the industry. That won him significant campaign contributions from digital currency firms and investors, many of whom had complained about what they said were aggressive efforts by the Biden administration to regulate the emerging market. Trump also co-founded the World Liberty Financial firm two months before his election victory in November, along with his three sons and the wealthy real estate businessman Steve Witkoff, who is now Trump's Middle East envoy. Trump issued his own crypto token Trump also issued his own crypto token just before taking office, which soared to more than $10 billion in market value, and enthusiasm over his crypto-friendly administration helped briefly lift Bitcoin and other cryptocurrencies to record levels. Trump's so-called "memecoin" surged from less than $10 on the Saturday before his inauguration to as high as $74.59 before eventually giving up some of its gains. The token, branded $TRUMP, has been criticized by ethics experts as a conflict of interest for the president since the company could likely benefit from his pro-crypto policies. Since taking office, Trump has pushed pro-cryptocurrency efforts, including establishing a Digital Asset Markets working group to propose new digital asset regulations and to look into creating a national cryptocurrency stockpile. Creating a Strategic Bitcoin Reserve Last month, Trump signed an order to create a federal Strategic Bitcoin Reserve, signaling new federal support for cryptocurrency in general and Bitcoin in particular. Its members included Treasury Secretary Scott Bessent, White House A.I. and Crypto Czar David Sacks, along with "heads of other relevant departments and agencies," including the chairman of the Securities and Exchange Commission. As a result, cryptocurrencies like Bitcoin will likely become more mainstream and possibly used for payment, just like credit and debit cards. This article originally appeared on USA TODAY: Cryptocurrency fraud unit shut down by Justice Department
Yahoo
17-04-2025
- Business
- Yahoo
Department of Justice shuts down National Cryptocurrency Enforcement Team
April 9 (UPI) -- The Department of Justice ended its National Cryptocurrency Enforcement Team, while also redirecting focus away from targeting crypto fraud. Deputy Attorney General Todd Blanche sent a memo Monday announcing that the Justice Department will "no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets" as President Donald Trump has "actual regulators do this work outside the punitive criminal justice framework." The memo said that in accordance with Executive Order 14178, the Justice Department will no longer "target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users or unwitting violations of regulations," and that the "National Cryptocurrency Enforcement Team shall be disbanded effective immediately." The Justice Department further ordered the Market Integrity and Major Fraud Unit to shift its focus fully away from cryptocurrency fraud and instead make immigration and procurement fraud a priority. Under the Trump administration, the Securities and Exchange has dropped multiple investigations into cryptocurrency platforms. In March, Trump also signed an executive order that established a strategic bitcoin reserve along with a U.S. digital asset stockpile. Rep. Gerry Connolly, D- Va., who is the Ranking Member of the Committee on Oversight and Government Reform, sent a letter in March to Department of Treasury Secretary Scott Bessent that the creation of such a reserve "provides no discernible benefit to the American people but would significantly enrich the President and his donors." "Holders of cryptocurrency include the President, his family, and his closest allies," he said. "The Trump Organization maintains significant ownership" in the World Liberty Financial cryptocurrency venture.
Yahoo
09-04-2025
- Business
- Yahoo
DOJ scales back crypto enforcement
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. The Department of Justice will no longer prosecute cryptocurrency firms for 'unwitting' regulatory violations and will instead focus on prosecuting those who victimize crypto investors and those who use digital assets to support other illicit activities. The DOJ has also disbanded its National Cryptocurrency Enforcement Team, effective immediately, and ordered its Market Integrity and Major Frauds Unit to cease crypto enforcement. Deputy Attorney General Todd Blanche inked a memo detailing such changes Monday. 'The Justice Department will no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets while President Trump's actual regulators do this work outside the punitive criminal justice framework,' wrote Blanche. Prosecutors are directed to stop charging regulatory violations, including unlicensed money transmitting, violations of the Bank Secrecy Act, unregistered securities offering violations, unregistered broker-dealer violations, and other violations of registration requirements under the Commodity Exchange Act 'unless there is evidence that the defendant knew of the licensing or registration requirement at issue and violated such a requirement willfully.' The policy outlined in Executive Order 14178, according to Blanche, requires the DOJ to prioritize investigations that include 'embezzlement and misappropriation of customers' funds on exchanges, digital asset investment scams, fake digital asset development projects such as rug pulls, hacking of exchanges and decentralized autonomous organizations resulting in the theft of funds, and exploiting vulnerabilities in smart contracts.' Such focuses are intended to restore stolen customer funds and build investor confidence in digital assets, Blanche wrote. Ongoing investigations that don't connect into illicit activities such as organized crime, human trafficking, drug smuggling and terrorism, or take advantage of investors, should be closed, Blanche wrote. The memo is in line with a slew of crypto regulatory developments under President Donald Trump, including rule easings at the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Commodity Futures Trading Commission. The Securities and Exchange Commission has dropped several ongoing cases against crypto firms and has alsodeveloped a crypto task force. Trump also announced the creation of, and named the coins within, a national crypto reserve. These developments align with promises Trump made along the campaign trail while courting the crypto vote. During his campaign to be the 47th president, he raised millions from crypto firms and professionals who saw him as, as Kraken founder Jesse Powell described him, 'the only pro-crypto majority party candidate.' Powell shelled out $1 million for Trump. Six years ago, the president was a vocal crypto skeptic. 'I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,' Trump posted on the social media site previously known as Twitter. Now, though, he appears to be all in. Beyond tapping crypto-friendly regulators and writing multiple digital asset-related executive orders, he joined the industry by launching World Liberty Financial, a crypto firm, with his sons in September. He and his wife Melania also each launched their own meme coins, $TRUMP and $MELANIA, days before inauguration day. $TRUMP is currently worth $8.16, down from its all-time high of $73.43; and $MELANIA is now worth $0.53, down from its all-time high of $13.73, according to CoinMarketCap. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Department of Justice shuts down National Cryptocurrency Enforcement Team
April 9 (UPI) -- The Department of Justice ended its National Cryptocurrency Enforcement Team, while also redirecting focus away from targeting crypto fraud. Deputy Attorney General Todd Blanche sent a memo Monday announcing that the Justice Department will "no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets" as President Donald Trump has "actual regulators do this work outside the punitive criminal justice framework." The memo said that in accordance with Executive Order 14178, the Justice Department will no longer "target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users or unwitting violations of regulations," and that the "National Cryptocurrency Enforcement Team shall be disbanded effective immediately." The Justice Department further ordered the Market Integrity and Major Fraud Unit to shift its focus fully away from cryptocurrency fraud and instead make immigration and procurement fraud a priority. Under the Trump administration, the Securities and Exchange has dropped multiple investigations into cryptocurrency platforms. In March, Trump also signed an executive order that established a strategic bitcoin reserve along with a U.S. digital asset stockpile. Rep. Gerry Connolly, D- Va., who is the Ranking Member of the Committee on Oversight and Government Reform, sent a letter in March to Department of Treasury Secretary Scott Bessent that the creation of such a reserve "provides no discernible benefit to the American people but would significantly enrich the President and his donors." "Holders of cryptocurrency include the President, his family, and his closest allies," he said. "The Trump Organization maintains significant ownership" in the World Liberty Financial cryptocurrency venture.
