TLDR
- Democratic lawmakers requested suspicious activity reports (SARs) related to Trump’s crypto ventures from the US Treasury
- The probe targets World Liberty Financial, Trump Token, and mentions Justin Sun, Elon Musk, and various PACs
- Democrats raised concerns about foreign influence and potential violations of campaign finance laws
- Senators Warren and Van Hollen urged Trump to divest from his stablecoin holdings before his Middle East trip
- Trump’s crypto ventures, including investor events and potential UAE deals, have sparked corruption concerns
Democratic lawmakers have launched a multi-pronged investigation into former President Donald Trump’s cryptocurrency ventures, requesting financial records and pressing for divestment ahead of diplomatic engagements. The efforts represent growing concern among Democrats about potential conflicts of interest and foreign influence related to Trump’s expanding crypto portfolio.
Treasury Investigation Targets Trump Tokens
On May 14, Democratic Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin sent a letter to Treasury Secretary Scott Bessent requesting all suspicious activity reports (SARs) filed since 2023 related to World Liberty Financial (WLF) and the Official Trump token. The sweeping probe seeks any SARs mentioning several entities and individuals, including WinRed, America PAC, Elon Musk, Trump, MELANIA, and crypto entrepreneur Justin Sun.
Financial institutions in the US must file SARs with the Financial Crimes Enforcement Network when they detect activity that might indicate money laundering or fraud. The lawmakers set a May 30 deadline for the Treasury to provide these reports.
The Democrats stated their investigation aims to “determine whether legislation is necessary to prevent violations of campaign finance, consumer protection, bribery, securities fraud, and other anti-corruption laws.” They also cited the need to guard against “financial misconduct connected to prospective or current federal officials.”
In their letter, the lawmakers expressed concern that WLF could become a “vehicle for foreign influence peddling” because part of its token sale targeted foreign investors who face “less stringent regulation than US investors.” They also flagged Justin Sun’s investment in WLF and the subsequent pause of an SEC lawsuit against Sun as a matter of concern.
The Trump token faced criticism in the letter because purchaser identities remain undisclosed, potentially allowing bad actors to “curry favor with Trump” by buying the cryptocurrency. The investigation also seeks information on Republican digital fundraising platform WinRed and Elon Musk’s super PAC, which reportedly contributed $250 million to Trump’s election campaign.
Middle East Trip Raises Stablecoin Concerns
In a separate action, Senators Elizabeth Warren and Chris Van Hollen urged Trump to divest from his stablecoin holdings before his Middle East trip. In a letter sent on Monday, the senators warned against allowing foreign governments to use the stablecoin to influence Trump’s decision making.
Their concerns stem partly from a New York Times report that Trump family members could profit from $2 billion worth of their stablecoins used in a transaction involving an Abu Dhabi investment fund. “You can eliminate at least one venue for corruption… by divesting all of your interests and your family’s interests” in the stablecoin, the lawmakers wrote.
The senators also noted that Trump’s meme coin website had invited its top 220 investors to an “intimate private dinner” with the president. References to the White House were later removed from the website.
Trump is reportedly seeking $1 trillion worth of deals and investments during his Middle East trip. The visit comes as Qatar plans to donate a $400 million luxury jet to serve as the new Air Force One, and as the U.S. considers loosening export restrictions on AI chips to the UAE.
These investigations represent the latest Democratic efforts targeting Trump’s crypto ventures, following a May 6 multi-angle attack that included two bills and a subcommittee inquiry aimed at Trump’s ability to profit from his crypto initiatives.
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