Senate Dems to AG Pick: Crypto Unit Died So $1.4B Trump Deal Could Live 🚨

Acting US Attorney General Todd Blanche faced sharp criticism Wednesday from the Senate Judiciary Committee's top Democrat over his role in disbanding the Department of Justice's crypto enforcement unit and the agency's subsequent posture toward the digital asset industry. Ranking member Senator Dick Durbin used his opening statement at Blanche's confirmation hearing to accuse him of "dismantling DoJ's enforcement team and shutting down ongoing criminal investigations of the crypto industry," actions he said enabled President Donald Trump to benefit financially from the sector, including through his family's business World Liberty Financial.

Durbin cited a figure of $1.4 billion in Trump-linked gains from industry ties and alleged that former Binance CEO Changpeng "CZ" Zhao "broker[ed] a deal to channel $2 billion" into World Liberty Financial, a transaction he linked to Zhao's subsequent presidential pardon. Zhao pleaded guilty in 2023 to one felony charge under the Anti-Money Laundering (AML) regime at the exchange. "Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain," Durbin said. Blanche was reportedly behind the dissolution of the DoJ's crypto enforcement unit in April 2025 while serving as deputy attorney general.

Senate Republicans hold a 52-47 margin to confirm Blanche, whose nomination also faces scrutiny over immigration enforcement actions, claims he would facilitate Trump's targeting of perceived adversaries, and the handling of the Jeffrey Epstein files. Senator Mitch McConnell remains hospitalized following what his team described as a fall that led to pneumonia. Blanche has served as acting US Attorney General since the April firing of Pamela Bondi.

Republican Senator Thom Tillis pressed Blanche on the Zhao pardon, telling him he was "concerned that the Binance CEO got pardoned." Blanche said he would review the pardon process if confirmed. He also authored a 2025 memo described as "ending regulation by prosecution" in the crypto sector and previously disclosed digital asset-related investments of at least $159,000, which he said were divested to his children and grandchildren. Shortly after his appointment, Blanche told crypto holders that officials would not pursue cases against blockchain developers who were not responsible for illicit activity on platforms, stating: "[I]f you are developing software, if you are a coder, if you are part of that process and you are not the third-party user, and you are not helping and knowing the third party is using what you developed to commit" a crime. A simple majority of lawmakers present is required for confirmation should the nomination advance from the judiciary panel.