Trump’s New Attorney General Owns Bitcoin—But Crypto Developers Still Face Prosecution
President Trump just named Todd Blanche as the new head of the Department of Justice—and his personal crypto holdings and mixed record on digital currency enforcement have left many in the crypto world confused. On one hand, he’s shut down aggressive government units targeting crypto; on the other, developers are still being sent to prison for writing code. If you’ve ever wondered whether using or building crypto tools could land you in legal trouble, this shift matters.
A Crypto Holder in Charge
Todd Blanche isn’t just another government lawyer—he personally owns Bitcoin and Ethereum. When he joined the DOJ last year as deputy attorney general, he disclosed holding between $100,000 and $250,000 in Bitcoin and another $50,000 to $100,000 in Ethereum, plus smaller amounts of other tokens like Solana and Polygon. All were held through Coinbase, a popular U.S. crypto exchange.
Later, he said he transferred those assets to his adult children and a grandchild—likely to avoid conflicts of interest while serving in office. But his personal stake raised eyebrows: how can someone who benefits from crypto’s success fairly enforce laws around it?
Rolling Back the ‘Crypto Crackdown’
Soon after stepping into his role, Blanche made a bold move: he disbanded the DOJ’s dedicated crypto enforcement team. This unit had been created under the previous administration to investigate and prosecute crypto-related crimes, often focusing on exchanges and privacy tools.
Blanche criticized that approach as “regulation by prosecution”—a phrase meaning the government was trying to shape policy not through clear laws, but by threatening people with jail time. He argued this strategy was confusing, unfair, and scared away innovation.
He also directed prosecutors to ease up on certain services, including crypto “mixers.” These are tools that obscure transaction trails—like putting cash in an envelope and shuffling it with others so no one knows whose is whose. While criminals sometimes use them, privacy advocates argue they’re essential for everyday users who want financial confidentiality, just like using cash.
But Developers Are Still Going to Jail
Despite these pro-crypto signals, federal prosecutors kept charging software developers for creating privacy-focused crypto tools. In one high-profile case, two developers behind a Bitcoin privacy app were sentenced to prison for operating an “unlicensed money transmitter.”
Another developer, Roman Storm, was convicted last year for building similar Ethereum-based software. Although the jury couldn’t agree on two other charges, prosecutors—under Blanche’s leadership—recently moved to retry him on those counts.
This contradiction has frustrated many in the crypto space. As Peter Van Valkenburgh of Coin Center put it, the industry is now in “a very bad state” because it’s unclear what’s actually allowed.
Key developments under Blanche’s watch include:
- Disbanding the DOJ’s specialized crypto enforcement unit
- Publicly opposing “regulation by prosecution”
- Continuing to pursue criminal cases against developers of privacy software
- Supporting retrials even after partial jury deadlocks
What Does This Mean for Regular People?
If you use crypto wallets, send money across borders, or care about digital privacy, this legal uncertainty affects you. The government hasn’t drawn clear lines: writing code isn’t the same as running a bank, but prosecutors are treating some developers like financial operators.
For now, there’s no guarantee that owning or building crypto tools is safe from legal risk—even if top officials like Blanche hold Bitcoin themselves. Until laws catch up with technology, everyday users and creators remain in a gray zone.
Key Takeaways
- Todd Blanche, Trump’s new Attorney General, personally owned significant amounts of Bitcoin and Ethereum before transferring them to family.
- He dismantled the DOJ’s crypto-focused enforcement team and criticized past aggressive tactics.
- Yet, under his leadership, developers of privacy-enhancing crypto software continue to face criminal charges.
- The lack of clear rules leaves both builders and users unsure what’s legal.
- President Trump has hinted at pardons for convicted developers, but none have happened yet.
— Editorial Team
