Congress Pushes New DOJ Task Force to Tackle Cryptocurrency Theft

Representatives Lance Gooden and Josh Gottheimer have introduced the Federal Cryptocurrency Theft Enforcement and Coordination Act, seeking to establish a dedicated task force within the Department of Justice. The proposed body would function as a central hub for investigating wallet thefts, exchange exploits, and phishing attacks, drawing expertise from the FBI, the Department of Homeland Security, and the Treasury Department’s Financial Crimes Enforcement Network.

The legislation arrives just over a year after the Justice Department dismantled its National Cryptocurrency Enforcement Team. That unit, which spearheaded high-profile prosecutions against entities like Tornado Cash and Mango Markets exploiter Avraham Eisenberg, was shuttered following a directive from Deputy Attorney General Todd Blanche to move away from what the department termed 'regulation by prosecution.'

Unlike its predecessor, the new task force is explicitly barred from regulating digital asset markets or financial products. Instead, proponents intend for the unit to focus on operational support, including the development of advanced evidence-tracing techniques and the provision of technical training for local law enforcement. By consolidating resources, lawmakers hope to address the current fragmentation that often complicates the recovery of stolen assets and the prosecution of cross-border digital crimes.