A Deep Dive into Senator Blumenthal's Investigation of President Trump's Crypto Business
The Lowdown
Senate Subcommittee Investigates Trump Over Alleged Cryptocurrency Misconduct
U.S. Senator Richard Blumenthal, as the Ranking Member of the U.S. Senate Permanent Subcommittee on Investigations (PSI), is taking a closer look at President Donald Trump's cryptocurrency ventures. The focus is mainly on the President's digital asset businesses, such as the infamous $TRUMP "meme coin," the World Liberty Financial Inc. (WLFI), and other related entities [1][3].
Digging Deeper
The inquiry aims to uncover potential ethics violations, conflicts of interest, and possible breaches of federal law associated with these crypto businesses. The investigation seeks answers to questions like whether President Trump used his federal office to financially benefit from cryptocurrency firms, and if these ventures facilitated unauthorized financial transactions with foreign nationals under federal prosecution, involved investments from foreign governments, or otherwise violated government ethics rules and laws [1][3].
Home In on $TRUMP Meme Coin and World Liberty Financial
The inquiry takes a keen interest in the $TRUMP coin issued by Fight Fight Fight LLC, which offered exclusive events like private dinners with the President and VIP White House tours for top token holders. Blumenthal contends that these promotions artificially inflated the token's value, ultimately benefiting the President [1].
World Liberty Financial, a company linked to Trump and his family, reportedly holds a significant stake in WLFI, with 22.5 billion of the $WLF tokens and accounting for 75% of the net revenue from future token purchases. The Trump family collectively allegedly owns a 60% stake in WLFI [2].
burning Questions
Blumenthal has penned letters to key figures like Bill Zanker of Fight Fight Fight LLC and Zach Witkoff, co-founder of World Liberty Financial, requesting clarification about ownership structures, investment arrangements, and steps taken to manage potential conflicts of interest given the President’s ability to profit from these cryptocurrencies [1][3].
Pay-to-Play Schemes?
Blumenthal accuses the crypto activities of creating "a pay-to-play scheme to provide access to the Presidency to the highest bidder," pointing out how the $TRUMP coin gives people worldwide—including foreign governments and questionable actors—a chance to enrich the President under the cloak of blockchain technology [1][3].
In the Wider Scope
The Trump family's net worth is reportedly $2.9 billion richer, thanks to these crypto investments [2]. The SEC has paused investigations into several crypto companies since President Trump took office, leading to questions about regulatory oversight and potential conflicts arising from his crypto dealings [2]. The White House downplays the significance of the crypto activities, claiming that media focus should be on issues deemed more crucial by the public [2].
In essence, Senator Blumenthal's inquiry seeks to establish whether President Trump's cryptocurrency-related businesses and promotional activities abused his public office to generate financial gain, potentially breaching ethics rules and federal law, while also investigating connections to foreign financial actors and the opaque nature of blockchain transactions in these ventures [1][3].
- Senator Blumenthal is investigating President Trump's Ethereum and Bitcoin ventures, including his digital asset businesses such as the $TRUMP "meme coin."
- The investigation aims to uncover potential conflicts of interest, ethics violations, and breaches of federal law associated with these cryptocurrency businesses.
- Questions include whether President Trump used his office to financially benefit from cryptocurrency firms and whether these ventures facilitated unauthorized financial transactions.
- The $TRUMP coin, issued by Fight Fight Fight LLC, offered exclusive events for top token holders, potentially artificially inflating its value.
- World Liberty Financial, a company linked to Trump and his family, reportedly holds a significant stake in its token, accounting for 75% of the net revenue from future token purchases.
- Blumenthal has written letters to key figures requesting clarification about ownership structures, investment arrangements, and steps taken to manage potential conflicts of interest.
- Blumenthal accuses the crypto activities of creating a "pay-to-play scheme" providing access to the Presidency to the highest bidder.
- The SEC has paused investigations into several crypto companies since President Trump took office, leading to questions about regulatory oversight and potential conflicts arising from his crypto dealings.
- The White House downplays the significance of the crypto activities, while critics argue that they should be a matter of policy-and-legislation and general-news.
- The inquiry seeks to establish whether President Trump's cryptocurrency-related businesses and promotional activities abused his public office to generate financial gain, potentially breaching ethics rules and federal law, while also investigating connections to foreign financial actors and the opaque nature of blockchain transactions in these ventures.
