The Democratic caucus of the U.S. House of Representatives on Wednesday (14th) requested the U.S. Treasury Department to provide details regarding suspicious financial activities related to the DeFi project World Liberty Financial and the meme coin TRUMP.
Democratic Congressman wrote to U.S. Treasury Secretary Scott Bessent, requesting the Treasury to 'provide the committee with all suspicious activity reports (SARs) related to... the cryptocurrency business World Liberty Financial (WLF) recently launched by the Trump family and the meme coin TRUMP of the same name.'
This request is part of a broader investigation that includes probing the Musk political action committee that supports Trump and the Republican fundraising platform WinRed. The basis for these demands from the Democratic caucus is concerns about 'bribery, corruption, and conflicts of interest.'
The Democrats have also specifically named World Liberty Financial's major backer, Justin Sun, the founder of TRON. The letter states:
In January of this year, Mr. Sun purchased $45 million worth of WLFI tokens, bringing his total investment in this joint venture to $75 million. Shortly thereafter, the SEC requested a court to suspend enforcement actions against Mr. Sun.
Trump's increasing involvement in the cryptocurrency space has sparked strong criticism from political opponents, accusing him of using the cryptocurrency field to fill his pockets.
Last week, New York Democratic Congressman Ritchie Torres introduced a bill aiming to prohibit Trump, future presidents, and congress members from using meme coins and stablecoins as money-making machines. Senate Democrats, including Senator Elizabeth Warren, have also requested information about the connections between Trump and Binance, the world's largest cryptocurrency exchange by trading volume.
Abu Dhabi investment company MGX previously announced plans to utilize World Liberty Financial's 'USD1' stablecoin to facilitate a $2 billion investment deal with Binance, which has already sparked controversy.
On the other hand, TRUMP token holders gaining the opportunity to dine with Trump further exacerbates the situation of alleged conflicts of interest.
Bessent, who was appointed by Trump and has a friendly attitude towards cryptocurrency, currently faces uncertainty on how to respond to the latest actions from U.S. House Democrats.
"House Democrats write to the Treasury Department: requesting clarification on the interests related to 'Trump's involvement in cryptocurrency'" This article was first published by (BlockBeats).
