Investigation Launched Over Potential Fraud, Bribery, and Conflicts of Interest in Donald Trump's Cryptocurrency Business
Firing Up the Investigation
Top Democrats in the House have ignited an inquiry into President Donald Trump's crypto endeavors, expressing concerns about possibly illegal fundraising, foreign influence, and misuse of political power.
To gather evidence, they have demanded all suspicious activity reports (SARs) associated with Trump's financing efforts.
The Accusations
In a missive to Treasury Secretary Janet Yellen, senior representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin, from three House committees, wrote:
"We pen this letter concerning the alleged misuse of certain politically oriented fundraising ventures for fraudulent, corrupt, or other unlawful purposes."
The probe concentrates on the Republican fundraising platform WinRed, numerous political action committees like Elon Musk’s America PAC, the Trump family's World Liberty Financial (WLF), and meme coins linked to the president and first lady.
The lawmakers are particularly interested in WLF's WLFI token sale. After falling short of initial fundraising goals, WLF received a $75 million purchase from Justin Sun. The Tron founder has been under SEC scrutiny since 2023, but recently secured a pause in the case as negotiations with regulatory bodies remained ongoing, leading to speculation of bribery.
The House Democrats also mentioned the $TRUMP and MELANIA meme coins. According to them, entities affiliated with the president hold 80% of the former's supply and have amassed over $100 million in trading fees.
Foreigners, including some Chinese nationals, allegedly raked in substantial profits by selling the meme token early, while later investors suffered losses amounting to over $2 billion. These patterns have spurred accusations of possible insider trading and pump-and-dump manipulation.
The missive also raised concerns about national security and foreign influence, given that coin purchasers remain anonymous and most WLF tokens were sold to foreign investors. Connolly and his colleagues argued that this could facilitate non-natives gaining sway over U.S. policy.
In March 2025, WLF announced plans to launch a stablecoin called USD1. Later, a fund backed by Abu Dhabi disclosed it would employ the stablecoin for a $2 billion investment in the Binance crypto exchange, which had previously been indicted for violating U.S. anti-money-laundering laws.
The missive underscores the dangers posed by Trump's conflicts of interest and the ethics of merging business and presidential power.
Trump Under unrelenting Scrutiny
These legislators are urging that all relevant SARs from January 1, 2023, to the current date be handed over to their committees by May 30. This request comes amidst mounting pressure from Democrats keen on regulating political involvement in crypto.
In the past week, Rep. Ritchie Torres presented a bill to prohibit sitting presidents and members of Congress from profiting off meme coins and stablecoins. In April, Senators Elizabeth Warren and Adam Schiff called for an ethics probe after a Trump-hosted gala dinner offered exclusive invitations for top holders of his Solana-based meme coin.
Apart from this, Congress turned down the GENIUS Act, a bill aimed at regulating stablecoins, citing unresolved conflicts linked to Trump's crypto dealings.
Additional Insights:
- Trump, as per the investigation, stands accused of exploiting his political influence to generate funds through cryptocurrency ventures, flouting campaign finance regulations, bribery laws, and securities rules.
- The Democrats' actions indicate a growing concern within the party over potential financial improprieties and foreign influence in U.S. politics.
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- The House Democrats' investigation into President Donald Trump's crypto endeavors includes scrutiny of WinRed, political action committees like Elon Musk’s America PAC, the Trump family's World Liberty Financial (WLF), and meme coins linked to Trump and the first lady, with a particular focus on WLF's WLFI token sale.
- WLF supposedly received a $75 million purchase from Justin Sun after falling short of initial fundraising goals, which has raised suspicions of bribery due to Sun being under SEC scrutiny since 2023.
- The House Democrats also expressed concerns about the $TRUMP and MELANIA meme coins, as entities affiliated with the president hold 80% of the former's supply and have amassed over $100 million in trading fees. Allegations of possible insider trading and pump-and-dump manipulation have arisen from this.
- Trump's crypto dealings are being linked to potential financial improprieties and foreign influence in US politics, as WLF announced plans to launch a stablecoin called USD1, and a fund backed by Abu Dhabi intended to employ the stablecoin for a $2 billion investment in the Binance crypto exchange, which had previously been indicted for violating US anti-money-laundering laws.
