Trump Crypto Ventures Face Investigation Over Fraud, Bribery, and Conflicts Of Interest
By: bitcoin ethereum news|2025/05/16 06:15:06
0
Share
Top House Democrats have launched an inquiry into President Donald Trump’s crypto ventures, citing concerns over potentially illegal fundraising, foreign influence, and abuse of political power. In line with this, they have requested all suspicious activity reports (SARs) connected to Trump’s fundraising efforts. The Allegations In a letter to Treasury Secretary Scott Bessent, Democrats Gerald Connolly, Joseph Morelle, and Jamie Raskin, senior members from three House committees, said: “We write regarding the potential misuse of certain politically oriented fundraising ventures for fraudulent, corrupt, or other illegal purposes.” The inquiry targets the Republican fundraising platform WinRed, multiple political action committees, including Elon Musk’s America PAC, the Trump family’s World Liberty Financial (WLF), and meme coins linked to the president and first lady. The lawmakers were specifically interested in World Liberty’s WLFI token sale. After failing to meet initial fundraising targets, WLF received a $75 million purchase from Justin Sun. The Tron founder has been under SEC scrutiny since 2023 but recently secured a pause in the case as discussions with regulators continued, raising suspicions of bribery. The House Democrats also mentioned the TRUMP and MELANIA meme coins. According to them, entities affiliated with the president control 80% of the former’s supply and have earned over $100 million in trading fees. Foreigners, some allegedly Chinese nationals, are also said to have made substantial profits selling the meme token early, while later investors lost more than $2 billion. These patterns have fueled accusations of possible insider trading and pump-and-dump activity. The letter also addresses concerns about national security and foreign influence, given that coin buyers remain anonymous and most WLF tokens were sold to foreign investors. Connolly and company argued that this left room for non-natives to possibly gain influence over U.S. policy. In March 2025, WLF announced plans to launch a stablecoin called USD1. Later, a fund backed by Abu Dhabi revealed it would use the stablecoin for a $2 billion investment in the Binance crypto exchange, which was previously convicted of violating U.S. anti-money-laundering laws. The letter highlights that the timing and nature of this deal show the dangers of Trump’s conflicts of interest and the ethics of mixing business and presidential power. Trump Faces Ongoing Scrutiny The three legislators are demanding that all relevant SARs from January 1, 2023, to the present be made available to their committees by May 30. Their request comes amid increased pressure from Democrats seeking to regulate political involvement in crypto. Last week, Rep. Ritchie Torres introduced a bill to ban sitting presidents and members of Congress from profiting off meme coins and stablecoins. In April, Senators Elizabeth Warren and Adam Schiff also called for an ethics probe after a Trump-hosted gala dinner promised exclusive invitations for top holders of his Solana-based meme coin. Separately, Congress voted down the GENIUS Act, a bill that aims to regulate stablecoins, citing unresolved conflicts linked to Trump’s crypto dealings. LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin! Source: https://cryptopotato.com/trump-crypto-ventures-face-investigation-over-fraud-bribery-and-conflicts-of-interest/
You may also like

Crypto Market Update: BTC Holds $76K as Fear Index Signals Opportunity — What Is Futures Trading & Spot Trading Explained
Bitcoin (BTC) is holding above $76,000, supported by strong institutional buyingThe Fear & Greed Index at 33 indicates continued market caution despite price strengthCrypto ETPs saw $1.4B in inflows, marking three consecutive weeks of capital growthEthereum (ETH) is consolidating around $2,300, with resistance near $2,360Understanding what is futures trading vs what is spot trading is key in volatile marketsTraders are increasingly combining spot accumulation with futures trading strategies

DeFi is trapped in the most dangerous prisoner's dilemma in history
This incident has returned to the classic dilemma of cryptography: pragmatic security vs completely decentralized security.

Exclusive Interview with Jeff Hoffman: How Web3 and AI are Reshaping the Trillion-Dollar Social Travel Market
The most valuable platforms will not only be aggregators of suppliers, but they will also have relational networks around payments, loyalty, and communities.

After the KelpDAO hack, AAVE's situation is worse than you think
October 10 is the CEX-driven collapse, an epic failure in DeFi risk mitigation.

Atkins Marks One-Year Anniversary at SEC: Crypto Regulation Shifts from ‘Enforcement Heavy’ to ‘Rulemaking Mode’
Before the bill is passed, the SEC's cryptocurrency regulatory framework remains in a transition state of "administrative guidance + enforcement actions."

Under Political Pressure, Is the Federal Reserve Still Independent?
Powell believes that political pressure is not a threat, and what truly determines the Fed's independence is the Fed itself.

Yellen's Past Remarks: How Will This Incoming "Fed Chair" Disrupt the Federal Reserve? Janet Yellen, who is expected to become the next Chair of the Federal Reserve, has made several significant statements in the past regarding monetary policy, financ...
Powell's reform blueprint not only looks bold and ambitious, but also directly targets many vulnerabilities of the Federal Reserve. Facing the upcoming Senate confirmation hearing, how will this Fed's presumptive new "helmsman" reshape the future of the world's largest central bank?

ZachXBT vs. RAVE: Is a “Clean” Market Really What Speculators Want?
While cleaning up manipulation, it may also involve cleaning up liquidity

Arbitrum Poses as Hacker, 'Steals' Back Money Lost by KelpDAO
Even though Arbitrum wielded the admin key, the battle is far from over.

Without Cook's Apple, Can it Still Grow in the AI Era?
The iPhone Remains at its Peak, But Apple is at a Turning Point

Saylor's Bitcoin Holdings Surpass BlackRock, How Does This "Bitcoin Financing Machine" STRC Work?
Funding Cap is not equal to Execution Path; whether Bitcoin can cooperate is the true variable.

What Is RWA? What Is RWA in Crypto (Complete 2026 Guide)
Wondering what is RWA in crypto? We explain what RWA is, break down RWA tokenization in simple no-jargon terms, and cover why it's 2026's hottest crypto narrative.

What Is the KelpDAO Attack? What It Means for Aave Users in 2026
KelpDAO suffered a $292M rsETH exploit on April 18, 2026, triggering Aave market freezes and $13B DeFi outflows. Here’s what happened, whether Aave is safe now, and what users should do next.

Is your gold really "within reach"? The geographical blind spots of custodial services behind tokenized gold
When "complete physical support" does not equal "truly desirable," the risks are just beginning to emerge.

Cook Passes the Baton, Anthropic Gears Up | Rewire News Morning Brief
In the window of AI reshaping the hardware landscape, Apple has chosen a Maker

Will the Fed Cut Interest Rates Again? Tonight's Data Is Key
Citi believes geopolitical turbulence is temporary and the rate cut trajectory remains unchanged. Meanwhile, Deutsche Bank warns that the policy has reached a neutral stance, with no interest rate cuts in the foreseeable future.

The person taking over Apple has to do something he has never done before
Software, AI, services—areas he never directly controlled in his 25-year Apple career

Why Are You Always Losing Money on Polymarket? Because You're Betting on News, While The Rulebook Favors Insiders
At Polymarket, most people who bet incorrectly are not wrong in their prediction but rather in not having read the rules carefully.
Crypto Market Update: BTC Holds $76K as Fear Index Signals Opportunity — What Is Futures Trading & Spot Trading Explained
Bitcoin (BTC) is holding above $76,000, supported by strong institutional buyingThe Fear & Greed Index at 33 indicates continued market caution despite price strengthCrypto ETPs saw $1.4B in inflows, marking three consecutive weeks of capital growthEthereum (ETH) is consolidating around $2,300, with resistance near $2,360Understanding what is futures trading vs what is spot trading is key in volatile marketsTraders are increasingly combining spot accumulation with futures trading strategies
DeFi is trapped in the most dangerous prisoner's dilemma in history
This incident has returned to the classic dilemma of cryptography: pragmatic security vs completely decentralized security.
Exclusive Interview with Jeff Hoffman: How Web3 and AI are Reshaping the Trillion-Dollar Social Travel Market
The most valuable platforms will not only be aggregators of suppliers, but they will also have relational networks around payments, loyalty, and communities.
After the KelpDAO hack, AAVE's situation is worse than you think
October 10 is the CEX-driven collapse, an epic failure in DeFi risk mitigation.
Atkins Marks One-Year Anniversary at SEC: Crypto Regulation Shifts from ‘Enforcement Heavy’ to ‘Rulemaking Mode’
Before the bill is passed, the SEC's cryptocurrency regulatory framework remains in a transition state of "administrative guidance + enforcement actions."
Under Political Pressure, Is the Federal Reserve Still Independent?
Powell believes that political pressure is not a threat, and what truly determines the Fed's independence is the Fed itself.

