Acting Attorney General Todd Blanche defended the department’s handling of Jeffrey Epstein documents, disputed creation of a proposed $1.8 billion “anti‑weaponization” fund and answered questions about cryptocurrency holdings during a two‑day Senate Judiciary confirmation hearing.
Acting U.S. Attorney General Todd Blanche testified Wednesday before the Senate Judiciary Committee as senators weighed his nomination to become attorney general. The hearing focused on three flashpoints from Blanche’s tenure: the Department of Justice’s release of Jeffrey Epstein‑related files, Blanche’s aborted plan for a $1.8 billion “anti‑weaponization” compensation fund, and his prior holdings in cryptocurrency while overseeing DOJ policy changes affecting the digital‑asset sector.
Intense Questioning on FBI Director Kash Patel
Sen. Sheldon Whitehouse (D‑R.I.) pressed Blanche sharply about FBI Director Kash Patel’s conduct and travel, asking, “How long do you intend to put up with that Kash Patel character?” Whitehouse cited Patel’s use of the FBI director’s plane for travel — including an Olympics trip to Milan and appearances at events tied to a person identified as his girlfriend — and raised questions about on‑the‑job alcohol use. Blanche responded, “That’s an extraordinarily obnoxious question, Senator,” and said he had “full faith in Director Patel and the work that he’s doing every day.” Whitehouse retorted, “Great, you get to own that.”
Epstein Files — Review, Redactions and Mistakes
Blanche defended the DOJ’s multi‑stage review of documents the department released under a law requiring disclosure of files related to Jeffrey Epstein. He described the review as a “Herculean task” involving millions of potentially responsive records and said experienced DOJ and FBI attorneys handled redactions.
Blanche acknowledged errors: roughly 1% of redactions required correction after public release. “Whenever we learned that any victim’s name had been improperly not redacted, we immediately took the document down and fixed it as soon as we could,” he said, adding he takes responsibility for mistakes while stressing the department worked to remedy them. He also said some withheld material was not responsive to the disclosure law, including documents tied to a different individual named Epstein.
Separately, a group of Epstein victims released a video urging senators to reject Blanche’s nomination, saying personally identifying information should have been redacted.
The Canceled $1.8 Billion “Anti‑Weaponization” Fund
Senators pressed Blanche on a proposed $1.8 billion fund intended to compensate people the DOJ deemed victims of prosecutorial overreach. Blanche said he canceled the fund after sharp criticism from both Republican and Democratic senators. The proposal had been linked to an out‑of‑court settlement in a suit filed by former President Donald Trump against the IRS over leaked tax records. Blanche told lawmakers he did not want the fund to move forward; senators pressed him on whether he would put that commitment in writing and work with Congress to codify a prohibition on creating the fund.
Cryptocurrency Holdings and Enforcement Decisions
Sen. Dick Durbin (D‑Ill.), the Judiciary Committee’s top Democrat, questioned Blanche about owning cryptocurrency while the department altered enforcement posture toward the crypto industry. Durbin said Blanche told him he had roughly $160,000 in cryptocurrency last year, that he was directed to divest, and had discussed those holdings with ethics and Office of Legal Counsel officials. Durbin expressed concern that Blanche’s family transfers of crypto assets occurred while DOJ dismantled a crypto enforcement team and paused certain criminal probes, calling the overlap “on its face, to be a conflict of interest.”
Blanche has not publicly responded to Durbin’s full recounting of their private meeting at the hearing.
Other Oversight Concerns and High‑Profile Prosecutions
Lawmakers also revisited DOJ actions last fall — prosecutions brought by the U.S. Attorney’s Office for the Eastern District of Virginia against figures former President Trump considers political opponents, including former FBI Director James Comey and New York Attorney General Letitia James. Those cases were dismissed by a judge in November after finding the interim U.S. attorney who filed them was invalidly appointed. Senators asked Blanche about the department’s role and supervision in those matters.
Tone from the White House and GOP Senators
President Trump posted praise for Blanche on Truth Social, calling him a “great lawyer, always very fair,” and urging Republican senators to confirm him “ASAP.” Several Republican senators criticized aspects of Blanche’s decisions but the hearing showed partisan divides on how forcefully to challenge his record.
Key Quotes
- “That’s an extraordinarily obnoxious question, Senator.” — Todd Blanche, responding to Sen. Sheldon Whitehouse.
- “We worked hard, hardworking lawyers within the department, to do the right thing, and we will continue to do so.” — Todd Blanche on the Epstein files.
- “I don’t think if you want to get rich you ought to be running for public office.” — Sen. Dick Durbin, on concerns about officials profiting while in government.
What’s Next
The Senate Judiciary Committee is conducting a two‑day confirmation hearing. Senators indicated they will continue to probe the redactions and release process for the Epstein files, Blanche’s statements and actions on the anti‑weaponization fund, and potential conflicts tied to his cryptocurrency holdings. Committee Democrats have signaled opposition; Republican responses vary.
Bottom Line for Traders
This hearing touches DOJ leadership, high‑profile prosecutions and policy shifts that can affect enforcement in sectors such as cryptocurrency. Lawmakers’ scrutiny of Blanche centers on institutional trust, redaction errors that drew victims’ ire, and perceived conflicts related to crypto policy — all factors that could shape DOJ priorities if Blanche is confirmed.
