Todd Blanche speaking at his confirmation hearing before the Senate Judiciary Committee on Wednesday. Source: Associated Press
The Illinois lawmaker said that Blanche’s order dismantling the DoJ’s crypto unit enable Trump to earn $1.4 billion from his ties to the industry, including his family’s business World Liberty Financial.
He also accused former Binance CEO Changpeng “CZ” Zhao of “broker[ing] a deal to channel $2 billion” into World Liberty, which led to a presidential pardon. The former CEO agreed in 2023 to plead guilty to one felony charge related to the Anti-Money Laundering (AML) regime at the exchange.
“Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain,” said Durbin.
Senate Republicans need a simple majority of lawmakers present to confirm Blanche as AG should his nomination advance in the judiciary panel. With Senator Mitch McConnell still hospitalized after what his team described as a fall that led to pneumonia, the party has a slim 52-47 margin to confirm Blanche, who faces pushback over the DoJ’s actions on immigration and its crypto policies, claims that he would facilitate Trump’s attacks on perceived enemies and the handling of the Jeffrey Epstein files.
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Blanche also faced crypto-related questions from Republican Senator Thom Tillis who said he was “concerned that the Binance CEO got pardoned.” Blanche said that he would review the pardon process if confirmed.
The Trump AG pick was behind a 2025 memo “ending regulation by prosecution” in the crypto industry and previously held at least $159,000 worth of digital asset-related investments before divesting them to his children and grandchildren.
He has been serving as acting US Attorney General since Pamela Bondi’s firing in April, telling crypto holders shortly after his appointment that officials would not pursue cases into blockchain developers who were not responsible for illicit activity on platforms.
”[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,” Blanche said at the Bitcoin 2026 conference.
The department still has ongoing cases against developers behind platforms allegedly used for illegal activities. Federal prosecutors are expected to retry Tornado Cash co-founder Roman Storm later this year after a jury failed to reach a verdict on two charges in 2025.
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Facts Only
* Todd Blanche spoke at his confirmation hearing before the Senate Judiciary Committee on Wednesday.
* Blanche stated an order dismantling the DOJ's crypto unit enabled Trump to earn $1.4 billion from ties to the industry, including World Liberty Financial.
* Blanche accused former Binance CEO Changpeng “CZ” Zhao of brokering a deal to channel $2 billion into World Liberty, which led to a presidential pardon.
* CZ agreed in 2023 to plead guilty to one felony charge related to the Anti-Money Laundering (AML) regime at Binance.
* Durbin stated that every "smarmy, suspect deal" in the administration had cryptocurrency behind it.
* Senate Republicans require a simple majority of lawmakers present to confirm Blanche as Attorney General.
* The party has a slim 52-47 margin to confirm Blanche.
* Blanche mentioned a 2025 memo "ending regulation by prosecution" in the crypto industry.
* Blanche previously held at least $159,000 worth of digital asset-related investments before divesting them to family members.
* Blanche served as acting U.S. Attorney General since Pamela Bondi's firing in April.
* Blanche told crypto holders that officials would not pursue cases into blockchain developers who were not responsible for illicit activity on platforms.
* Blanche stated that coders developing software who are not third-party users committing crimes would not be investigated or charged.
Executive Summary
Todd Blanche, speaking at his confirmation hearing before the Senate Judiciary Committee, addressed cryptocurrency issues related to his nomination. He stated that an order dismantling the Department of Justice's crypto unit allowed Donald Trump to earn $1.4 billion through his ties to the industry, including World Liberty Financial. Blanche also referenced accusations against former Binance CEO Changpeng Zhao (CZ) regarding channeling $2 billion into World Liberty, which resulted in a presidential pardon, noting that Zhao had pleaded guilty to an AML charge at the exchange in 2023.
The lawmaker indicated that many deals within the administration involve cryptocurrency. He also mentioned that the nominee previously held significant digital asset investments and emphasized his stance on blockchain developers, stating that those who are not third-party users involved in illicit activity would not face investigation or charges. He addressed concerns raised by Republican Senator Thom Tillis regarding the Binance CEO’s pardon, stating he would review the process if confirmed.
Full Take
The narrative centers on framing cryptocurrency as a conduit for illicit political and financial gain, weaving together accusations of insider deals, regulatory capture, and the application of law enforcement to technology. The repeated references to "smarmy deals" and the linkage between crypto, political figures, and legal outcomes suggest an underlying pattern where complex financial or regulatory actions are simplified into moralistic accusations against perceived elites.
The dynamic involves a tension between formal legal structures (DOJ actions, AML regulations) and the opaque, high-stakes world of digital assets. The attempt to position the nominee as a principled outsider—one who protects developers while scrutinizing powerful figures—is juxtaposed against the direct accusations that his alignment could facilitate political maneuvering benefiting specific interests. This structure suggests an effort to establish moral authority by claiming to uncover hidden corruption within a dominant economic sector, shifting the focus from policy specifics to personal accountability.
The implications concern the perceived integrity of federal oversight when applied to novel financial systems. When regulatory bodies are perceived as serving vested interests, and high-level personnel are involved in large financial transactions that result in pardons or favorable outcomes, public trust erodes. The pattern suggests that resistance to change in regulation is often masked by appeals to exceptionalism or moral grievance rather than a clear assessment of systemic risk. What decisions about jurisdiction and enforcement priorities are being made based on these associations versus demonstrable legal facts?
Sentinel — Human
This text appears to be standard reporting synthesizing testimony and context from a public hearing, demonstrating characteristics consistent with human journalistic synthesis rather than raw machine generation.