Trump's Cryptocurrency Investment Company Faces Fraud, Bribery, and Conflict of Interest Investigation
Recently, senior House Democrats have launched an investigation into President Trump's cryptocurrency investments, focusing on the connections between his fundraising platform and several suspicious activities, particularly violations related to World Liberty Financial (WLF) and meme coin projects.
Lawmakers are demanding all Suspicious Activity Reports (SARs) related to Trump's fundraising activities to assess the risks of potential illegal fundraising, foreign influence, and abuse of political power.
The investigation involves multiple key platforms, including the Republican fundraising platform WinRed, several political action committees, and the meme coin ($MELANIA) project associated with Trump's family and First Lady Melania. Legislators claim that these political fundraising activities may have been used for fraud, corruption, or other illegal purposes and must be thoroughly investigated.
The investigation also focuses on the WLFI token sale of World Liberty Financial. After the project failed to reach its funding target, it was acquired for $75 million by Tron founder Justin Sun, who has been under SEC scrutiny since 2023 for alleged bribery.
Lawmakers also pointed out that entities related to Trump control 80% of the supply of Trump Meme Coin ($TRUMP ) and have generated over $100 million in revenue from transaction fees.
Reports also allege that during the early sales of this meme coin, some foreign investors made significant profits, while later investors lost over $2 billion, raising suspicions of insider trading and market manipulation. Additionally, the anonymity of token purchasers has further heightened national security concerns.
In March of this year, WLF announced plans to launch a stablecoin named USD1, followed by a $2 billion investment from an Abu Dhabi-backed fund into the cryptocurrency exchange Binance. The coincidence and nature of this transaction have also raised alarms about potential conflicts of interest for Trump, highlighting the ethical challenges of blending commercial activities with political power.
Legislators are demanding the submission of all relevant Suspicious Activity Reports (SARs) since 2023 by May 30 to strengthen the regulation of cryptocurrency political participation. Meanwhile, Congress has vetoed the GENIUS Act, aimed at restricting the current president and congressional members from profiting from meme coins and stablecoins.
