US Senators press Deputy AG Blanche on alleged crypto conflicts of interest

Six U.S. Senators, including Elizabeth Warren and Richard Durbin, sent a letter to Deputy Attorney General Todd W. Blanche demanding answers regarding potential conflicts of interest. The senators allege that Blanche held between $158,000 and $470,000 in cryptocurrency (primarily Bitcoin and Ether) when he issued a memo in April 2025 that scaled back the Department of Justice's enforcement efforts in the digital asset sector, including disbanding the National Cryptocurrency Enforcement Team.

The letter suggests this participation in the decision may have violated federal law (18 U.S.C. § 208(a)), which prohibits executive branch employees from acting on matters where they have a known financial interest, noting willful violations are punishable by up to five years in prison. Furthermore, the senators noted that Blanche allegedly sold or transferred his crypto holdings months after promising to divest and after issuing the memo.

The DOJ previously stated that the issue was "appropriately flagged, addressed, and cleared in advance" and dismissed the claims as baseless. In response, the senators requested detailed explanations of how the matter was handled, records of ethics communications, and justification for the delay in divestment. An ethics watchdog, Campaign Legal Center, has also filed a complaint with the DOJ inspector general.

(Source：The Block)