The U.S. Department of the Treasury is under mounting pressure from Democratic lawmakers, who are demanding a thorough investigation into the financial dealings of former President Donald Trump, billionaire Elon Musk, and Republican fundraising platforms. The concern: potential corruption, fraud, and foreign interference in American politics.

Suspicious Crypto Activity Tied to Trump Under Scrutiny

A group of top Democrats from influential House committees has sent a letter to Treasury Secretary Scott Bessent, requesting all Suspicious Activity Reports (SARs) related to:

  • Trump’s cryptocurrency ventures,

  • Elon Musk’s political organization America PAC,

  • and the Republican fundraising platform WinRed.

A key focus is the meme coin $TRUMP, launched through World Liberty Financial (WLFI) and heavily promoted by Trump himself across social media and campaign rallies. This triggered a rapid price surge and attracted thousands of investors.

Concerns Over Token Control and Market Manipulation

More than 80% of the $TRUMP supply is reportedly held in digital wallets controlled by Trump and his allies. Lawmakers warn this creates a dangerous potential for price manipulation and centralized control — allowing insiders to profit while leaving ordinary investors in the dark.

They also noted that early investors, allegedly connected to the campaign, cashed out their tokens at peak prices. Meanwhile, regular buyers who entered late suffered substantial losses when the market collapsed.

USD1 Stablecoin Raises Constitutional Red Flags

Another major concern involves the planned stablecoin USD1, which aims to raise $2 billion in partnership with crypto exchange Binance and investment firm MGX Capital, which reportedly holds 90% of the token’s ownership. According to lawmakers, this raises potential violations of the U.S. Constitution’s Emoluments Clause, which forbids government officials from receiving financial benefits from foreign entities.

📊 Call for Transparency and Full Review

Lawmakers demand that the Treasury:

🔹 investigate WLFI's digital wallets,

🔹 trace the origin and movement of funds,

🔹 identify the true owners of these wallets,

🔹 and verify that all transactions comply with anti-money laundering laws.

Musk’s Political Spending Under Fire for Potential Election Influence

The spotlight also falls on Elon Musk and his America PAC, which reportedly:

  • spent over $250 million on political ads, giveaways to voters, and pro-Republican messaging,

  • may have coordinated its spending directly with GOP campaigns,

  • and allegedly incentivized voters with rewards — a tactic lawmakers see as a form of bribery.

Democrats cited public examples of America PAC aggressively leveraging social media and Musk’s influence to sway public opinion, with possible links to companies like Tesla raising concerns of conflicts of interest.

Fundraising Platform WinRed Also in the Crosshairs

Lawmakers are also targeting WinRed, the official Republican online fundraising platform. They want to know if WinRed verified donor identities, blocked illegal or foreign contributions, and adhered to campaign finance regulations.

FinCEN Tasked with Tracing Transactions, Wallets, and Donors

Democrats have urged the Financial Crimes Enforcement Network (FinCEN) to:

🔹 review SARs involving America PAC, WinRed, and affiliated groups,

🔹 uncover hidden financial ties,

🔹 detect suspicious donations and fund flows,

🔹 and ensure full compliance with U.S. law.

What’s at Stake?

This case could set a precedent for how the U.S. deals with the growing intersection of cryptocurrency, foreign capital, and political power. The Treasury’s response — and what comes next — may have a profound impact on the integrity of American elections and public trust in democratic processes.

#TRUMP , #Musk , #memecoin , #CryptoPolitics , #CryptoNewss

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