Six senators accused Deputy Attorney General Todd Blanche this week of having a conflict of interest when he shut down investigations into crypto companies, dealers and exchanges and eliminated an enforcement team dedicated to looking for crypto-related fraud and money-laundering schemes.
A letter written by Democratic Sens.Elizabeth Warren, Dick Durbin and Mazie Hirono and signed by Sens. Sheldon Whitehouse,Christopher Coons and Richard Blumenthal cited a ProPublica examination that revealed Blanche owned at least $159,000 worth of crypto-related assets when he ordered an end to the work.
Durbin,Hirono,whitehouse,Coons and Blumenthal serve on the Senate Judiciary Committee,which oversees the Justice Department.
The same senators previously sent a letter to Blanche raising concerns that his actions would help President Donald Trump’s financial interests in cryptocurrency. In their letter sent on Wednesday, they said Blanche’s actions appeared to violate the federal conflict of interest law.
“Last year, we asked for the rationale behind your puzzling decision to scale back the Department of Justice’s (DOJ) cryptocurrency enforcement efforts and urged you to reconsider. We write now in light of recent reporting that you held considerable amounts of cryptocurrency at the time you made this decision,” the senators wrote. “At the very least, you had a glaring conflict of interest and should have recused yourself.”
Blanche, the second-highest-ranking official at the Justice Department, signed an ethics agreement in February promising to dump his cryptocurrency within 90 days of his confirmation and not to participate in any matter that could have a “direct and predictable effect on my financial interests in the virtual currency” untill his bitcoin and other crypto-related products were sold.But on April 7, before he divested, he issued a memo titled “Ending Regulation by Prosecution” that halted investigations launched under President Joe Biden. In the memo, Blanche condemned the Biden Justice Department’s tough approach toward crypto as “a reckless strategy of regulation by prosecution, which was ill conceived and poorly executed.” the memo disbanded the agency’s National Cryptocurrency Enforcement team, which had won several high-profile crypto-related convictions. Blanche said the agency would instead target onyl the terrorists and drug traffickers who illicitly used crypto, not the platforms that hosted
Todd Blanche and Potential Conflicts of Interest
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This report examines allegations of potential conflicts of interest involving Todd Blanche, former attorney for Donald Trump, and his financial holdings in cryptocurrency and stock related to Coinbase. The data is based on a complaint filed by Campaign Legal Center and subsequent investigation requests.as of January 30, 2026, the investigations remain ongoing, and no official findings have been released.
Allegations of Financial Conflicts
According to a complaint filed by the Campaign Legal Center, Todd Blanche held investments in several cryptocurrencies, including Solana and Ethereum, and stock in Coinbase. These holdings raise concerns about potential conflicts of interest given his role as legal counsel to Donald Trump, particularly in cases involving financial regulations or companies. The complaint alleges that Blanche may have participated in “particular matters” that could financially benefit him or his immediate family, possibly violating federal ethics laws.
federal Conflicts-of-Interest Statute
18 U.S. Code § 208 prohibits goverment officials from participating in matters where they or their immediate family have a financial interest, unless a waiver is obtained. Violations of this statute can result in penalties ranging from a civil fine of up to $50,000 or imprisonment for up to one year, to a maximum of five years in prison for willful violations (18 U.S. Code § 216).
Campaign Legal Center Investigation
The Campaign Legal Center, a nonpartisan association focused on campaign finance and government ethics, initially filed a complaint with the Inspector General. On January 24, 2024, the group expanded its investigation request, asking the Office of Government Ethics (OGE) and the Justice Department’s ethics officer to investigate potential violations of Blanche’s ethics agreement, the federal conflicts-of-interest statute, and laws prohibiting false statements on compliance forms.
Todd Blanche’s Legal Background and Trump Cases
Todd Blanche
,a former federal prosecutor for the Southern District of New York,served as Donald Trump’s lead attorney in the Manhattan criminal trial. He successfully defended Trump against charges related to a hush-money payment to Stormy Daniels, resulting in Trump’s conviction on 34 felony counts. Blanche also represented Trump in cases concerning alleged attempts to subvert the 2020 election and the handling of classified documents, which were later dropped.
* Donald Trump: Former President of the United States and Blanche’s client.
* Campaign Legal Center: Nonpartisan organization that filed the complaint.
* Office of Government Ethics (OGE): Federal agency responsible for enforcing ethics regulations.
* Department of justice (DOJ): Federal agency responsible for investigating and prosecuting federal crimes.
* Coinbase: Cryptocurrency exchange company in which Blanche held stock.
* Solana & Ethereum: Cryptocurrencies in which Blanche held investments.
* Stormy Daniels: Adult film actress involved in the hush-money case.
Status as of January 30, 2026: The investigations initiated by the Campaign legal Center are ongoing. No official findings or conclusions have been publicly released by the OGE or DOJ regarding potential conflicts of interest involving Todd Blanche.
