Trump’s Lawyer Faces Crypto Conflict Accusation in DOJ Role Complaint
A complaint has been filed with the Justice Department, asserting that Todd Blanche, President Donald Trump’s criminal defense attorney and current Deputy Attorney General, may have violated federal conflict-of-interest statutes. The Campaign Legal Center, an ethics watchdog group, alleges that Blanche’s actions benefitted the cryptocurrency industry while he possessed extensive crypto investments.
Conflict-of-Interest Allegations Against Todd Blanche
The complaint centers on Blanche’s issuance of a new prosecution policy that arguably favors crypto-related companies. This policy directive emerged after a ProPublica investigation revealed Blanche owned over $159,000 in crypto assets when he discontinued investigations targeting cryptocurrency firms initiated under President Joe Biden’s administration.
Details of the April Memo
In an April memo, Blanche disbanded a specialized enforcement team aimed at combating fraud and money laundering in the cryptocurrency sector. The memo was titled “Ending Regulation by Prosecution” and criticized the Biden administration’s stringent approach towards cryptocurrency as ineffective. Blanche expressed the opinion that cryptocurrency is vital for the nation’s economic growth.
- Blanche’s memo eliminated a dedicated enforcement team.
- He shifted focus to only target terrorists and drug traffickers utilizing crypto.
- The memo received a positive response, with an increase in crypto trading activity.
Ethics Agreement and Financial Interests
Blanche had previously entered into an ethics agreement, requiring him to divest from his cryptocurrency investments within 90 days of assuming office. Despite the agreement, he reportedly transferred his crypto holdings to family members over a month after issuing the memo. This action has raised concerns about his compliance with the spirit of the law.
Kedric Payne, the Campaign Legal Center’s general counsel, stated that Blanche’s decisions appear to have improperly influenced the Justice Department’s digital asset prosecution guidelines, enriching his personal investments in the process. Notably, Blanche’s bitcoin investment reportedly increased by approximately 34%, suggesting significant financial gain during this timeframe.
Legal Implications of the Complaint
The federal conflict-of-interest statute prohibits government employees from engaging in actions that could personally benefit them financially, unless they have received explicit governmental approval. Violations can lead to serious consequences, including civil fines and potential jail time.
Payne emphasized that the evidence suggests a clear conflict, warranting an investigation by the acting inspector general of the Justice Department to determine whether a criminal violation has occurred. He remarked, “The public deserves assurance that decisions are made in the best interest of citizens and not for personal financial gain.”
Blanche’s Response
In response to the allegations, a Justice Department spokesperson defended Blanche, asserting that he maintains high ethical standards and transparency. The spokesperson described the complaint as unfounded and a distraction from the Department’s vital work in combatting crime and fraud.
Background on Todd Blanche
Before his current role, Todd Blanche was a federal prosecutor in the Southern District of New York and served as Trump’s lead attorney in several high-profile legal matters. His actions as Deputy Attorney General could have considerable implications for both the cryptocurrency sector and federal ethics oversight.
As the situation develops, the focus remains on whether this complaint will lead to a deeper investigation into Blanche’s involvement and the potential ramifications for his role at the Justice Department.
