Democrats Launch Investigation into Trump's Cryptocurrency Ventures

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.

Democratic lawmakers are launching a multi-pronged investigation into former President Donald Trump’s cryptocurrency ventures, requesting financial records and pressing for divestment ahead of diplomatic engagements.

What Happened: The efforts represent growing concern among Democrats about potential conflicts of interest and foreign influence related to Trump’s expanding crypto portfolio.

On Monday, Democratic Senators Elizabeth Warren (D-Mass.) and Chris Van Hollen (D-Md.) urged Trump to divest from his stablecoin holdings ahead of his upcoming Middle East trip. In a letter to Trump, the senators warned against allowing foreign governments to use the stablecoin to influence his decision making.

Their concerns stem partly from a New York Times report that Trump family members could profit from $2 billion in stablecoins used in a transaction with an Abu Dhabi investment fund.

"You can eliminate at least one venue for corruption—and potential violations of U.S. campaign finance law—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.

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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 Cancels Stablecoin Concerns: In a separate development, Democratic Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin have requested all suspicious activity reports (SARs) filed since 2023 with the Treasury Department related to World Liberty Financial (WLF) and the Official Trump token.

The lawmakers, who serve on the House Financial Services Committee, made the request in a May 14 letter to Treasury Secretary Scott Bessent.

The probe seeks any SARs mentioning several entities and individuals, including WLF, the Official Trump token, WinRed, America PAC, Elon Musk, Trump, MELANIA, and crypto entrepreneur Justin Sun, among others.

Financial institutions in the U.S. are required to file SARs with the Financial Crimes Enforcement Network when they detect activity that might indicate money laundering or fraud. The lawmakers requested these reports by May 30.

"Our investigation aims to determine whether legislation is necessary to prevent violations of campaign finance, consumer protection, bribery, securities fraud, and other anti-corruption laws," the Democrats wrote.

They also cited the need to safeguard against "financial misconduct connected to prospective or current federal officials."

The Democrats expressed concern that WLF could become a "vehicle for foreign influence peddling" because part of its token sale was open to foreign investors, who face "less stringent regulation than U.S. 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.

"We are deeply troubled by the potential for corruption and abuse of public trust that could arise from a foreign government official or entity's investment in a token marketed to the public as a means to 'support' President Trump," the letter stated.

The Trump token has faced criticism because the identities of its purchasers remain undisclosed, potentially allowing bad actors to buy the token to curry favor with the president.

"The lack of transparency in the Trump token's investor base raises serious concerns about foreign actors or corrupt officials potentially using this vehicle to influence or gain access to President Trump," the Democrats wrote.

The Trump family members' involvement in the stablecoin venture was a key focus for the senators, who urged cooperation in winding down the stablecoin project.

"We urge you to cooperate fully with this request and to advise President Trump to divest from all of his and his family's interests in the stablecoin project by May 17, 2024, to avoid the clear and present danger of corruption and foreign interference in U.S. affairs," the senators concluded.

The Trump campaign did not immediately respond to a request for comment.

Later this week, Trump is set to travel to the Middle East in search of $1 trillion in deals and investments.

As part of his trip, Qatar is planning to donate a $400 million luxury jet to serve as the new Air Force One, and the U.S. is considering loosening export restrictions on AI chips to the United Arab Emirates.

These investigations represent the latest Democratic efforts targeting Trump's crypto ventures.

Earlier this month, Democrats launched a multi-angle attack with two bills and a subcommittee inquiry aiming at Trump's ability to profit from his crypto initiatives.

The bills, introduced by Senator Bob Menendez (D-N.J.) and Representative Brad Sherman (D-Calif.), targeted