DOJ Drops Charges in Crypto Case as Enforcement Priorities Shift

Greenberg Traurig reports that a recent crypto case in Indiana federal court (United States v. Pilipis) marks a notable, though limited, win for digital asset operators facing charges related to unlicensed money transmission.

A judge dismissed key charges against Maximiliano Pilipis, who ran a cryptocurrency exchange between 2009 and 2013.

The dismissal reflects the court’s unwillingness to apply regulatory standards retroactively, as well as broader shifts in Department of Justice enforcement policies under the Trump administration.

Pilipis was indicted in 2024 for allegedly operating an unregistered money transmitting business and failing to file tax returns during his tenure as manager of AurumXchange.

At issue in the case was whether his conduct, which predated the 2013 FinCEN guidance and subsequent legislation that clarified digital asset transmission rules, constituted a crime under 18 U.S.C. § 1960.

The court found that prior to the 2013 guidance, the legal obligations for virtual currency exchanges were too ambiguous to support criminal liability under that statute.

In February 2025, the court granted Pilipis’s motion to dismiss the money laundering counts related to activity prior to March 2013, although it left tax charges and post-2013 conduct open.

The Department of Justice (DOJ) initially appealed but withdrew both the appeal and the case, citing a recent memo from Deputy Attorney General Todd Blanche, which directed prosecutors to avoid criminally charging digital asset-related regulatory violations without clear evidence of willful misconduct.

This crypto case marks a significant shift in federal enforcement strategy regarding digital assets. Attorneys advising crypto clients should emphasize the importance of staying informed about the evolving federal and state regulatory landscapes.

While DOJ may be pulling back from regulatory-based prosecutions, fraud and willful violations remain priorities. Early-stage tech companies should maintain rigorous compliance practices even in shifting enforcement environments.