Complaint Accuses Trump’s Criminal Attorney of “Blatant” Crypto Conflict in His Role at DOJ
Equal justice apparently isn't equal anymore.
An ethics watchdog group filed a complaint Thursday seeking an investigation into whether President Donald Trump’s criminal defense attorney — now the No. 2 at the Justice Department — broke federal conflict-of-interest law when he issued a new prosecution policy that benefits the cryptocurrency industry.
The complaint comes after a ProPublica investigation revealed last month that Todd Blanche owned at least $159,000 worth of crypto-related assets when he ordered an end to investigations into crypto companies, dealers and exchanges launched during President Joe Biden’s term. Blanche, the deputy attorney general, issued the order in an April memo in which he also eliminated an enforcement team dedicated to looking for crypto-related fraud and money-laundering schemes.
Blanche had previously signed an ethics agreement 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” until his bitcoin and other crypto-related products were sold.
Later ethics filings show Blanche divested from the investments more than a month after he issued the memo. Even when he did ultimately get rid of his crypto interests, his ethics records show he did so by transferring them to his adult children and a grandchild, a move ethics experts said is technically legal but at odds with the spirit and intent of the law.
In its complaint this week, the Campaign Legal Center asked the Justice Department’s acting inspector general to launch an investigation. The complaint alleged that the evidence suggests that Blanche “blatantly and improperly influenced DOJ’s digital asset prosecution guidelines while standing to financially benefit.”
“The public has a right to know that decisions are being made in the public’s best interest and not to benefit a government employee’s financial interests,” Kedric Payne, the organization’s general counsel and senior director of ethics, wrote in the complaint. The inspector general’s office “should investigate and determine whether a criminal violation occurred.”
The Campaign Legal Center is a nonpartisan government watchdog group dedicated to addressing challenges facing democracy in the U.S. Its trustees and staff include Democrats and Republicans, including Trevor Potter, a Republican former chair of the Federal Election Commission, who serves as president of its Board of Trustees.
Under the federal conflicts-of-interest statute, government officials are forbidden from taking part in a “particular matter” that can financially benefit them or their immediate family unless they have a special waiver from the government. The penalties range from up to one year in jail or a civil fine of up to $50,000 all the way to as much as five years in prison if someone willfully violates the law.
In the complaint, Payne alleged that Blanche’s orders violated the law because they benefited the industry broadly, including his own investments. He estimated that Blanche’s bitcoin alone rose by 34%, to $105,881.53, between when he issued the memo and when he divested. At the time he issued the memo, …
Equal justice apparently isn't equal anymore.
An ethics watchdog group filed a complaint Thursday seeking an investigation into whether President Donald Trump’s criminal defense attorney — now the No. 2 at the Justice Department — broke federal conflict-of-interest law when he issued a new prosecution policy that benefits the cryptocurrency industry.
The complaint comes after a ProPublica investigation revealed last month that Todd Blanche owned at least $159,000 worth of crypto-related assets when he ordered an end to investigations into crypto companies, dealers and exchanges launched during President Joe Biden’s term. Blanche, the deputy attorney general, issued the order in an April memo in which he also eliminated an enforcement team dedicated to looking for crypto-related fraud and money-laundering schemes.
Blanche had previously signed an ethics agreement 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” until his bitcoin and other crypto-related products were sold.
Later ethics filings show Blanche divested from the investments more than a month after he issued the memo. Even when he did ultimately get rid of his crypto interests, his ethics records show he did so by transferring them to his adult children and a grandchild, a move ethics experts said is technically legal but at odds with the spirit and intent of the law.
In its complaint this week, the Campaign Legal Center asked the Justice Department’s acting inspector general to launch an investigation. The complaint alleged that the evidence suggests that Blanche “blatantly and improperly influenced DOJ’s digital asset prosecution guidelines while standing to financially benefit.”
“The public has a right to know that decisions are being made in the public’s best interest and not to benefit a government employee’s financial interests,” Kedric Payne, the organization’s general counsel and senior director of ethics, wrote in the complaint. The inspector general’s office “should investigate and determine whether a criminal violation occurred.”
The Campaign Legal Center is a nonpartisan government watchdog group dedicated to addressing challenges facing democracy in the U.S. Its trustees and staff include Democrats and Republicans, including Trevor Potter, a Republican former chair of the Federal Election Commission, who serves as president of its Board of Trustees.
Under the federal conflicts-of-interest statute, government officials are forbidden from taking part in a “particular matter” that can financially benefit them or their immediate family unless they have a special waiver from the government. The penalties range from up to one year in jail or a civil fine of up to $50,000 all the way to as much as five years in prison if someone willfully violates the law.
In the complaint, Payne alleged that Blanche’s orders violated the law because they benefited the industry broadly, including his own investments. He estimated that Blanche’s bitcoin alone rose by 34%, to $105,881.53, between when he issued the memo and when he divested. At the time he issued the memo, …
Complaint Accuses Trump’s Criminal Attorney of “Blatant” Crypto Conflict in His Role at DOJ
Equal justice apparently isn't equal anymore.
An ethics watchdog group filed a complaint Thursday seeking an investigation into whether President Donald Trump’s criminal defense attorney — now the No. 2 at the Justice Department — broke federal conflict-of-interest law when he issued a new prosecution policy that benefits the cryptocurrency industry.
The complaint comes after a ProPublica investigation revealed last month that Todd Blanche owned at least $159,000 worth of crypto-related assets when he ordered an end to investigations into crypto companies, dealers and exchanges launched during President Joe Biden’s term. Blanche, the deputy attorney general, issued the order in an April memo in which he also eliminated an enforcement team dedicated to looking for crypto-related fraud and money-laundering schemes.
Blanche had previously signed an ethics agreement 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” until his bitcoin and other crypto-related products were sold.
Later ethics filings show Blanche divested from the investments more than a month after he issued the memo. Even when he did ultimately get rid of his crypto interests, his ethics records show he did so by transferring them to his adult children and a grandchild, a move ethics experts said is technically legal but at odds with the spirit and intent of the law.
In its complaint this week, the Campaign Legal Center asked the Justice Department’s acting inspector general to launch an investigation. The complaint alleged that the evidence suggests that Blanche “blatantly and improperly influenced DOJ’s digital asset prosecution guidelines while standing to financially benefit.”
“The public has a right to know that decisions are being made in the public’s best interest and not to benefit a government employee’s financial interests,” Kedric Payne, the organization’s general counsel and senior director of ethics, wrote in the complaint. The inspector general’s office “should investigate and determine whether a criminal violation occurred.”
The Campaign Legal Center is a nonpartisan government watchdog group dedicated to addressing challenges facing democracy in the U.S. Its trustees and staff include Democrats and Republicans, including Trevor Potter, a Republican former chair of the Federal Election Commission, who serves as president of its Board of Trustees.
Under the federal conflicts-of-interest statute, government officials are forbidden from taking part in a “particular matter” that can financially benefit them or their immediate family unless they have a special waiver from the government. The penalties range from up to one year in jail or a civil fine of up to $50,000 all the way to as much as five years in prison if someone willfully violates the law.
In the complaint, Payne alleged that Blanche’s orders violated the law because they benefited the industry broadly, including his own investments. He estimated that Blanche’s bitcoin alone rose by 34%, to $105,881.53, between when he issued the memo and when he divested. At the time he issued the memo, …
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