The Oversight Committee of the USA Democratic Party has requested that the Treasury Department conduct an investigation into Trump’s crypto and his family’s DeFi project.
This is clearly a political initiative, given that the investigation is being requested by a committee of the opposition party, so much so that it seems more like a propaganda initiative rather than a concrete act.
In fact, the Department of the Treasury is an integral part of the Trump administration, so it is rather difficult to imagine that it could investigate against its own current head.
Trump’s crypto
Donald Trump launched his namesake memecoin on January 18, 2025, which is two days before taking office at the White House as the new USA president.
The launch took place officially and in grand style, so much so that the price of the TRUMP token within a few hours went from less than $4 to more than $75.
It was immediately evident that a true speculative bubble had inflated, so much so that just two days later the price began to fall.
Note that the collapse, which lasted almost a month, stopped just above $14, that is, well above the initial price.
However, after a brief pause in mid-February, the downward trend resumed, dropping even below $8 in April. At that point, although the price was still higher than the initial price, it was lower than what it had been from three hours after the landing on the crypto markets onwards.
Starting from the end of April, it then marked a significant rebound, which brought it up to over $16, followed by a small correction that brought it back to around $13.
Many believe that it was just an initiative to raise funds.
The accusations of the democrats against the TRUMP token and the crypto project WLFI
The Comitato di Vigilanza Democratico, on the other hand, openly talks about a scam.
Technically, in fact, they asked the Department of the Treasury to deliver the reports on suspicious activities (SAR) concerning some organizations, in order to investigate electoral fraud and corruption.
Among such organizations, they included WinRed, the PAC of Elon Musk, some fraudulent PACs, World Liberty Financial, and Trump Coin.
Trump Coin is obviously the memecoin launched by Donald Trump, while World Liberty Financial is the DeFi project of the Trump family.
WinRed, on the other hand, is the for-profit Republican fundraising platform that partially funded Trump’s election campaign, while America PAC is a super PAC created by Elon Musk along with some important American businessmen to support the election campaign.
In the USA, a PAC (Political Action Committee) is a tax-exempt organization that collects electoral contributions and donates them to electoral campaigns.
In the list targeted by the Democratic Oversight Committee, there are also those fraudulent fake PACs that apparently raised funds for Trump’s election campaign, but instead pocketed that money.
Since this is a very common scam, like many others, in theory, the Department of Justice should already be dealing with it, as it does with all other scams. However, it is no coincidence that the so-called Scam PACs have been included in this list, probably precisely to be able to associate the word scam with the rest of the mentioned names.
In other words, as of today, there do not appear to be any concrete accusations, but only a request for an investigation.
“`html The letter “`
In addition to this, three Democratic representatives (Joseph Morelle, Jamie Raskin, and Gerald Connolly) sent an open letter to the Secretary of the Treasury, Scott Bessent, in which they requested documentation still regarding WLFi and TRUMP to be able to investigate.
Scott Bessent is Donald Trump’s right-hand man, so it is unlikely that such an initiative will succeed. However, it could be a move to somehow induce him to make some mistake, such as refusing to provide required documents.
In theory, the objective would be to determine whether further laws are necessary to prevent violations of campaign finance laws, consumer protection, corruption, securities fraud, and other anti-corruption laws, but it is obvious that in reality, the focus is specifically on fundraising by Trump.
Technically, however, the letter only requests access to certain information, such as the suspicious activity reports (SAR) concerning WinRed, America PAC, World Liberty Financial, TRUMP, MELANIA, and Justin Sun.
It therefore seems that this is only the beginning of an investigation conducted by the democrats against the current republican administration.
