Six Democratic senators have accused Deputy Attorney General Todd Blanche of a conflict of interest in dismantling cryptocurrency enforcement efforts at the Justice Department. They claim he held substantial crypto assets when he issued orders halting investigations, potentially violating federal ethics rules. The criticism follows a ProPublica report revealing his financial holdings worth at least $159,000.
In a letter sent this week, Senators Elizabeth Warren, Dick Durbin, Mazie Hirono, Sheldon Whitehouse, Christopher Coons, and Richard Blumenthal—members of the Senate Judiciary Committee—demanded clarification from Blanche on the legality of his actions. The senators referenced a prior letter they sent last year, urging him to reconsider scaling back the Department of Justice's cryptocurrency enforcement. They wrote, “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. At the very least, you had a glaring conflict of interest and should have recused yourself.” The group expressed concerns that Blanche's moves could aid President Donald Trump's cryptocurrency interests and enable crimes like sanctions evasion and money laundering. An independent report they cited noted a surge in illicit crypto activities in 2025, including those linked to human trafficking. Blanche, who signed an ethics agreement in February to divest his cryptocurrency within 90 days and avoid related matters until then, issued a memo on April 7 titled “Ending Regulation by Prosecution.” This document criticized the Biden administration's approach as “a reckless strategy” and disbanded the National Cryptocurrency Enforcement Team, shifting focus solely to terrorists and drug traffickers using crypto, not the platforms themselves. At the time, Blanche owned bitcoin, Solana, Ethereum, and Coinbase stock, with his bitcoin holdings reportedly rising 34% to $105,881.53 after the memo but before divestment. A Justice Department spokesperson stated that Blanche’s orders were “appropriately flagged, addressed and cleared in advance,” without further details. The senators required responses by February 11, including ethics communications and any prior industry contacts. Separately, the Campaign Legal Center, led by Kedric Payne, requested an investigation by the DOJ inspector general, Office of Government Ethics, and ethics officer, alleging violations of conflict-of-interest laws that could lead to up to five years in prison. Blanche, a former prosecutor and Trump's defense attorney in key trials, including the hush-money case, faces scrutiny over whether his decisions benefited personal finances.
