US House Democrats Request All Suspicious Activity Reports (SARs)

US House Democrats have officially requested Treasury Secretary Scott Bessent to provide all Suspicious Activity Reports (SARs) regarding cryptocurrency ventures

US House Democrats are requesting Treasury Secretary Scott Bessent to provide all Suspicious Activity Reports (SARs) regarding cryptocurrency ventures linked to President Donald Trump and his family.

In a letter dated 14 May and signed by Congressmen Gerald E. Connolly, Joe Morelle, and Jamie Raskin, concerns were raised about corruption, bribery, election finance violations, and predatory practices, especially against vulnerable citizens.

The request focuses on several entities traceable to the former president, starting with World Liberty Financial (WLF), the crypto platform launched by the Trump family in 2024. The company issued a non-transferrable governance token with no intrinsic economic value and no ownership rights, but nevertheless actively promoted by the president’s circle.

According to the petitioners, this initiative represents one of the most serious conflicts of interest ever documented, even in light of the current administration’s pro-Trump political agenda.

The heating of the case

The case unfolded rapidly in recent months, beginning with an investment of $75 million by Justin Sun, a Chinese entrepreneur under investigation by the SEC for fraud, in WLF itself. Following Sun’s entry into the platform’s capital – which took place in two tranches between January and March – the SEC suspended enforcement action against him.

In March, WLI announced the launch of a stablecoin called USD1. A few days later, a fund linked to an Abu Dhabi investor announced its intention to use USD1 to close a $2 billion deal on the Binance exchange, generating indirect profits for WLF.

This link between stablecoins, international investments and political influence raised the alarm of Ritchie Torres, a Democratic congressman who introduced a bill to prohibit sitting presidents from profiting from stablecoins or digital initiatives with a high risk of conflict of interest.

The $TRUMP contest and access to the president

Special attention was also paid to the launch of the $TRUMP memecoin, which occurred the day before the presidential inauguration. The cryptocurrency, which has no functional purpose, was used to organise a contest guaranteeing an invitation to dinner with Trump to the first 220 buyers of the token.

The user ranking, visible on the coin’s official website, shows only nicknames and wallet codes. No biographical data or geographical limits are required, which has fuelled suspicions about the possibility of foreigners buying political influence via cryptocurrency.

In particular, the wallet linked to the largest buyer of $TRUMP – worth more than $18 million – was associated with Justin Sun himself. A further investment of $300 million in $TRUMP tokens was announced by GD Culture Group, a US-based technology company with ties to a Chinese subsidiary and e-commerce activities on TikTok. The deal coincided with internal debate within the administration over a possible ban or forced sale of the TikTok platform in the US.

The opaque structure of the crypto empire

The structure of the $TRUMP token empire is complex and opaque. Although Donald Trump does not formally own the companies that operate $TRUMP, entities connected to the Trump Organisation control about 80 per cent of the token’s total supply, equivalent to one billion units. From exchange fees alone, according to recent estimates, over $100 million has already been collected.

The legal entities involved include CIC Digital LLC and Fight Fight LLC, both linked to the financial ecosystem of the Trump family, which has also announced the future listing of its own Bitcoin mining company.

In the face of ethical and legal concerns, some parliamentarians, including some Republicans, have spoken out against the $TRUMP contest and WLF’s operations. Senator Richard Blumenthal, for example, opened a formal investigation calling the situation ‘an unprecedented pay-to-play system’.

Meanwhile, the Genius Act, a bipartisan bill to regulate the crypto sector, was blocked due to the implications of the Trump case. Three Republicans joined Democrats in calling for stronger clauses to avoid future cryptocurrency-related conflicts of interest. “The biggest corruption crisis in modern history is unfolding now before our eyes,” said Senator Elizabeth Warren,.