The U.S. Justice Department will shut down KleptoCapture, the task force dedicated to tracking and seizing assets belonging to Kremlin-linked oligarchs, according to a memo from Attorney General Pam Bondi seen by Reuters.
The decision signals a shift in priorities, with resources being redirected to fighting drug cartels and international crime.
"This policy requires a fundamental shift in thinking and approach," Bondi stated in the document.
A Short-Lived Crackdown on Russian Wealth
Formed in March 2022 in response to Russia’s invasion of Ukraine, KleptoCapture was tasked with enforcing sanctions, restricting access to assets, and combating financial networks tied to Russian elites.
Led by Andrew Adams, the unit targeted foreign investment advisers, hedge funds, law firms, and private equity managers suspected of helping sanctioned individuals circumvent restrictions.
As of February 2024, the Justice Department reported that KleptoCapture had seized or secured forfeiture orders for nearly $700 million in Russian-linked assets. Additionally, the task force brought charges against more than 70 individuals accused of violating sanctions and export controls.
Despite these efforts, the memo states that prosecutors involved in the task force will now return to their previous positions, and the order will remain in effect for at least 90 days, with the possibility of becoming permanent.
Russia’s Response
The Kremlin has long condemned the seizure of Russian assets in the West, calling it "theft."
In response, Moscow passed a law in April 2023 allowing Russian authorities to take temporary control of Western-owned property in Russia if Russian assets were confiscated abroad.
President Vladimir Putin has also authorized Russian courts to use American property in Russia as compensation for losses caused by U.S. asset seizures.
