Durbin Faults AG Nominee Over DOJ Crypto Unit, CZ Pardon

Sen. Dick Durbin accused Attorney General nominee Todd Blanche on Wednesday of ordering the Justice Department’s crypto enforcement unit disbanded in April 2025 and of actions that, he said, helped lead to a presidential pardon for Binance founder Changpeng “CZ” Zhao. Durbin made the charges during Blanche’s confirmation hearing before the Senate Judiciary Committee.

Durbin told the committee that Blanche issued the order while serving as deputy attorney general. He asserted that the change allowed former President Donald Trump to gain financially through his family’s company, World Liberty Financial, and accused CZ of brokering a $2 billion transaction tied to a later pardon. CZ pleaded guilty in 2023 to one felony count related to anti-money-laundering compliance at Binance.

Senators questioned Blanche about the department’s approach to crypto enforcement, immigration and other high-profile matters. Republican Sen. Thom Tillis highlighted concerns about the CZ pardon; Blanche replied that he would review the pardon process if confirmed.

Blanche defended his policy on crypto enforcement. He issued a 2025 memo described by Justice Department officials as an end to “regulation by prosecution” in the sector. At the Bitcoin 2026 conference, he told attendees: “[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 crimes, you are not going to be investigated and not going to be charged.” He has said developers who do not knowingly aid criminal activity should not be targets of investigation.

Blanche disclosed that he previously held at least $159,000 in digital asset-related investments and reported transferring those holdings to his children and grandchildren. Senators and ethics observers raised conflict-of-interest concerns and questioned whether disbanding the crypto unit reduced scrutiny of industry actors who might otherwise face enforcement actions.

The Justice Department continues to pursue cases involving cryptocurrency platforms and developers. Federal prosecutors plan to retry Tornado Cash co-founder Roman Storm later this year after a 2025 jury failed to reach a verdict on two charges.

Blanche has been serving as acting attorney general since Pamela Bondi’s firing in April. His nomination must clear the Judiciary Committee before a full Senate vote. Republicans hold a narrow confirmation margin in the Senate, and Senate Majority Leader Mitch McConnell remains hospitalized, leaving a slim 52-47 edge that depends on members’ presence. Several senators said Blanche will face additional scrutiny on his handling of sensitive files, including those related to Jeffrey Epstein, and on whether his tenure would enable political attacks against perceived opponents.

In his opening remarks, Durbin declared, “Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain.” Blanche’s answers at the hearing indicated he would narrow criminal enforcement in the crypto space to cases involving knowing criminal conduct and that he would review extraordinary executive actions such as pardons if confirmed.