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Fort Lauderdale, Fla. (April 15, 2025) - Fort Lauderdale Partner Sean Shecter recently spoke with Law360 for an article titled, “Did DOJ Bless A Crypto Free-For-All? Think Again, Attys Say,” which addresses the potential impacts of the U.S. Department of Justice’s (DOJ) dissolution of its crypto fraud investigations unit.

As the article describes, Deputy Attorney General Todd Blanche has directed the DOJ to disband the National Cryptocurrency Enforcement Team, “effective immediately.” He has instructed the department to stop probing crypto exchanges and digital asset tumbling, “except to the extent the investigation is consistent with the priorities articulated” in his memo.

Mr. Shecter told Law360 that it would be a mistake to interpret Mr. Blanche’s directive as greenlighting criminal activity related to crypto, noting, “What it says is if prosecutors are going to bring a crypto case, they better make sure there’s something really wrong criminally,” rather than focusing on regulatory violations. Mr. Shecter also explained that crypto exchanges could be exposed to criminal liability where they fail and leave investors in a lurch, such as during the collapse of FTX in 2022. He elaborated, “There’s an insane amount of volatility in the [crypto] market right now. All it takes is another FTX for the [DOJ] to say, ‘We need to take a look at this.’”

In addition, Mr. Shecter noted the issue of how the disbandment of the DOJ’s crypto unit would impact digital asset criminal enforcement, explaining that members of the unit had significant expertise in digital investigations. He described, “It was a good resource. What happens to all that brain trust and understanding of how to bring such cases?”

Mr. Shecter – a former federal prosecutor – serves as co-chair of Lewis Brisbois’ Government Investigations & White Collar Defense Practice, as chair of its Supply Chain Due Diligence Practice, and as a member of its AI Task Force. In addition to having extensive experience defending clients in regulatory, white-collar criminal, and complex civil litigation matters, he is proficient in advising clients on emerging AI regulations and compliance issues.

Read the full Law360 article here (subscription may be required).