On May 30, local time, a jury in a New York court ruled that all 34 felony charges of falsifying business records in the "hush money" case against former US President Trump were established. Trump became the first former president in US history to be convicted.
New York prosecutors allege that during Trump's 2016 presidential campaign, he commissioned his personal lawyer Cohen to pay $130,000 in hush money to porn star Daniels (real name Stephanie Clifford) to prevent the latter from claiming that she had an affair with Trump in 2006 and affecting her election. Trump then falsified business records and returned the money Cohen advanced in installments under the name of "lawyer fees" to cover up his violations of New York and federal election regulations.
Trump is charged with 34 felonies, each of which carries a maximum sentence of four years in prison, and the judge will sentence him on July 11. The Republican Party will hold its national convention on July 15 to formally nominate Trump as its presidential candidate.
Prosecutors allege Trump directed Cohen to pay Daniels $130,000 in hush money before the 2016 election and reimbursed Cohen through company books recorded as "legal services." Trump's team claims the money was actually for legal work. Trump has denied all charges, calling the trial "rigged." He has also called on donors to contribute to his presidential campaign. "They searched my home, arrested me, took my picture, and now they just convicted me!" reads a fundraising appeal. Trump's fundraising operation has had several wins, including $76 million raised in April, $25 million more than Biden. He has also received support from billionaire Miriam Adelson and Blackstone Group CEO Steve Schwarzman.
For the market, the impact of the verdict is still unclear. Ed Yardeni, founder of Yardeni Research, said: "The stock market has historically been unaffected by domestic politics. However, after Trump's verdict, the political atmosphere will obviously be more turbulent, which may increase stock market volatility." Compared with the stable performance of traditional financial assets, crypto assets reacted more violently. The price of Trump concept coins fell sharply, with TRUMP coins plummeting from about $15 to $11.27. MAGA Hat, Super Trump and MAGA VP also fell by 16%, 16% and 22% respectively.
Memecoins inspired by Trump's main rival, current President Joe Biden, rose after the verdict. Jeo Boden, the largest memecoin by market value, rose 12% in an hour. The guilty verdict provides Biden with a new opportunity. Michael Taylor, Biden's campaign communications director, said the result shows that "no one is above the law" and that Trump "has always mistakenly believed that he would never break the law for personal gain and be punished." Biden also admitted that the legal system is not enough to prevent Trump from taking back the White House in November. He said in a fundraising campaign: "There is only one way to keep Donald Trump from entering the White House: through the ballot box."
Republican strategist Alex Conant said Trump's felony conviction provides Biden with an opportunity to shake up the campaign by refocusing voters' attention on Trump's behavior. "It would be a dereliction of duty not to rely solely on the verdict," Conant said. "I hope President Biden gives a major speech and Democratic officials incite the country and do everything they can to make the campaign a referendum on Trump."