Senate Probes Trump's Cryptocurrency Endeavors on Foreign Interference Grounds

Senate Slams Trump's Cryptocurrency Adventures: A Closer Look

The Permanent Subcommittee on Investigations (PSI), chaired by Senator Richard Blumenthal, has sensationally probed into President Trump's crypto escapades. The investigation revolves around two ventures: the Trump-sanctioned TRUMP token and the World Liberty Financial (WLFI) project.

Trump's Crypto Kingdom on the Hot Seat

The investigation was ignited via a pair of scathing letters sent to Bill Zanker of Fight Fight Fight LLC, the organization behind the TRUMP token, and Zach Witkoff, co-founder of Trump-aligned WLFI. Here's the jist:

"Yo, PSI is eying potential conflicts of interest and law-breaking from President Trump's crypto odyssey," both letters reportedly read.

This inquiry echoes rising fears that both Trump's crypto ventures might be skirting government ethics laws. The whispers questionably suggest that WLFI and Fight Fight Fight LLC have engaged in shady practices, including facilitating investments from foreign governments and individuals subject to federal investigations, potentially breaching the foreign emoluments clause of the U.S. Constitution—a big no-no.

Staring at the Fight Fight Fight LLC's TRUMP cryptocurrency, the letter brings attention to its meteoric rise after President Trump's endorsement, followed by a precipitous fall. This turn of events bears striking resemblance to a classic pattern observed in the crypto market: the infamous "pump and dump," "rug pull," or "rug," where insiders make a killing before the coin crashes.

In a striking move, the company attempted to spark renewed interest through a "Dinner with Trump" plan, which fueled further concerns about insider trading and exploitation of the President's influence to benefit his family and business associates.

"Trump's monetary entanglements with the TRUMP coin, and his attempts to host events with the goal of boosting the token's value, signal an unprecedented, pay-to-play scheme designed to offer access to the Presidency to the highest bidder," the letter concluded.

Meanwhile, WLFI is under the microscope for promoting Trump as their "Chief Crypto Advocate" and his sons Eric, Donald Jr., and Barron as their "Web3 Ambassadors." This designation presents an opportunity for anyone worldwide, including foreign governments and shady individuals, to indirectly stuff Trump's coffers with cryptocurrency, all disguised within the blockchain's mystical cloak of anonymity.

World Liberty Financial: Questionable Ties and National Security Concerns

Despite WLFI's promises to spur the adoption of stablecoins and DeFi, it has drawn heat for accepting large investments from foreign nationals, especially TRON founder Justin Sun, who faces allegations of market manipulation in an ongoing SEC case. WLFI's stablecoin USD1's involvement in the $2 billion Binance and Abu Dhabi-based MGX collaboration has sparked further concerns, as Binance confessed to intentionally breaking anti-money laundering, sanctions, banking, and financial crimes laws in January 2023.

In addition, the firm DWF Labs funneled $25 million dollars into WLFI, raising eyebrows because the company is linked to market manipulation and has ties to Russian banks, circumventing sanctions.

"WLFI's links with Trump, his family, and the Trump Administration introduce previously uncharted conflicts of interest and potential national security risks, including potential foreign emoluments clause violations," the letter warned.

The investigation is now delving into both companies' financial dealings and interactions with foreign entities. The PSI has requested detailed records from both Fight Fight Fight LLC and WLFI, demanding information on ownership structures, financial ties to Trump-adjacent entities, and communications with foreign governments. Moreover, the Subcommittee is probing whether these firms have implemented sufficient policies to deter insider trading, foreign influence, and violations of U.S. anti-money laundering and sanctions laws.

Senator Murphy Sounds the Alarm: TRUMP Coin is "corrupt" and "unethical"

Amid the burgeoning scrub on Trump's crypto involvements, Senator Chris Murphy and California Congressman Sam Liccardo unveiled the Modern Emoluments and Malfeasance Enforcement (MEME) Act. This bill aims to ban the President, Vice President, Members of Congress, senior Executive Branch officials, and their immediate families from delving into digital assets, including meme coins.

Murphy directly tackled the TRUMP meme coin, calling it "the most unethical, the most corrupt thing a President has ever done.""Essentially, it creates a backdoor for corporations, Saudi princes, and foreign oligarchs looking to send Trump private, secret funds, and then privately whisper about the favors they need," Murphy claimed.

Blumenthal's investigation and the MEME Act represent a growing effort by Democratic lawmakers to tackle ethical concerns surrounding cryptocurrencies in politics. The White House is yet to comment on the investigation or the proposed legislation.

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The Permanent Subcommittee on Investigations (PSI) is investigating potential conflicts of interest and law-breaking in President Trump's decentralized web3 trading ventures, the TRUMP token and World Liberty Financial (WLFI), claiming a possible breach of the foreign emoluments clause.
Fight Fight Fight LLC's TRUMP cryptocurrency rose meteorically after Trump's endorsement and then fell precipitously, causing concerns of a "rug pull" or "pump and dump," insider trading, and exploitation of the President's influence.
WLFI, reportedly promoting Trump as their "Chief Crypto Advocate" and his sons as "Web3 Ambassadors," has drawn heat for accepting large investments from suspect sources, including Justin Sun, an SEC case defendant for market manipulation.
The WLFI stablecoin USD1's involvement in the $2 billion Binance and MGX collaboration has raised further concerns of breaching anti-money laundering, sanctions, banking, and financial crimes laws.
The investigation is probing firms' financial dealings and interactions with foreign entities, demanding detailed records on ownership structures, financial ties to Trump-adjacent entities, and communications with foreign governments.
Senator Chris Murphy unveiled the Modern Emoluments and Malfeasance Enforcement (MEME) Act to ban political leaders from delving into digital assets to prevent backdoor funds from corporations and foreign oligarchs.
Democrat lawmakers, through Blumenthal's investigation and the MEME Act, are growing efforts to address ethical concerns surrounding cryptocurrencies in politics, with the White House yet to comment on the investigation or the proposed legislation.