A new ethics complaint is raising serious questions about Todd Blanche, the Deputy Attorney General at the U.S. Department of Justice, and whether he broke federal rules related to his personal crypto investments. The complaint, filed by the Campaign Legal Center, focuses on a memo Blanche issued in April that changed how the DOJ handles cryptocurrency cases—just as he held significant crypto assets himself.

Blanche’s memo, titled “Ending Regulation by Prosecution,” criticized the Justice Department’s previous approach to digital assets. It ended several investigations into crypto companies and shut down the National Cryptocurrency Enforcement Team (NCET), which had been tasked with tackling crypto-related fraud and money laundering. Instead, the department would focus on using crypto in terrorism and drug trafficking cases. The move aligned with former President Donald Trump’s stance on reducing what he called regulatory overreach in the crypto space.

What makes this controversial is that Blanche reportedly held at least $159,000 in cryptocurrencies like Bitcoin, Ethereum, Solana, and Cardano when he made these changes. Reports say that after his memo was released, the crypto market saw a boost, with Bitcoin alone jumping 34% in value—making Blanche’s own holdings more valuable.

This raises a red flag because Blanche had signed an ethics agreement promising to sell off his crypto assets within 90 days of taking office and not to make decisions that could impact his personal finances. Yet, financial records show he didn’t divest until late May or early June—well after his April memo. He transferred most of his crypto assets to his adult children and a grandchild, a method allowed under federal rules but seen by some ethics experts as going against the spirit of those rules.

The Campaign Legal Center says there’s strong evidence that Blanche’s actions may have violated federal conflict-of-interest laws. These laws prohibit officials from making decisions that could directly benefit them or their close family unless they get official permission beforehand. The penalties for violating these laws range from fines to jail time.

Blanche did report selling additional crypto-related investments worth between $5,000 and $75,000 and transferring other holdings worth between $116,000 and $315,000 to family members. But critics say this happened too late to avoid questions about whether he acted unethically or even illegally.

The Department of Justice responded by defending Blanche, saying all necessary disclosures and reviews were handled properly and that the accusations are baseless. They claim Blanche acted transparently and followed all ethical requirements.

Still, the complaint is now in the hands of the DOJ’s acting inspector general, who will decide whether to open a formal investigation. At stake is whether Blanche’s financial interests improperly influenced official DOJ policy and if his delayed divestment violated ethics rules.

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