DOJ official Todd Blanche promised to dump his crypto holdings no later than 90 days after his Senate confirmation in March. But about a month into the job — before divesting — he issued a memo that ordered an end to investigations into crypto companies.
As Corey G. Johnson and Al Shaw report, Blanche also eliminated an enforcement team dedicated to looking for crypto-related fraud and money-laundering schemes. And his memo said the Justice Department would assist Trump’s crypto working group of experts and Cabinet members that went on to issue a list of recommendations aimed at making the United States the global leader in digital coins.
Blanche’s directives, while he still owned significant crypto investments, violated the conflicts of interest law and his ethics agreement, legal experts and former federal ethics officials told ProPublica.
When he did divest, records show Blanche transferred the investments to family members, a move experts said is technically legal but at odds with the spirit and intent of the law.
A staffer for Blanche said he and the Justice Department would not comment.