Trump Digital Asset Promises New Crypto Game, Prompts 'Pay to Play' Corruption Claims

Democratic senators called the competition a blatant example of "'pay to play' corruption." Earlier this week, the Senate advanced a Trump-backed

Democratic senators have called a cryptocurrency competition hosted by former President Donald Trump a “pay to play corruption” scheme as part of a broader effort to scuttle a GOP-led move to impose light-touch crypto regulation.

Earlier this week, the Senate advanced a Trump-backed crypto regulation bill called the GENIUS Act after getting enough Democratic support to clear a potential filibuster. The legislation, which is set to be voted on next week, would create a new regulatory framework for crypto based largely on existing commodities law.

The involvement of Democratic senators is crucial for the bill's passage, given the 50-50 partisan split in the chamber.

As part of the effort to rally support for the bill, GOP senators are highlighting Trump's backing for the legislation, which he expressed in an interview with Axios this week.

"This is a common-sense approach that will provide much-needed clarity and predictability for the digital asset industry," Trump said. "It's time for Congress to get this done and I urge the Senate to swiftly pass the GENIUS Act."

The former president's involvement in the crypto sphere has become a subject of interest, particularly his role in a crypto competition that drew an estimated $148 million in purchases from supporters around the world, according to blockchain analytics firm Inca Digital.

The competition, which was announced in December and is expected to launch in June, will award prizes to the top spenders of $TRUMP, a new token launched by Trump's family company, World Liberty Industrial Bank (WBIL), in partnership with the former president.

Guests for Thursday night's dinner were required to complete a background check, according to a copy of the invitation viewed by CNBC. Attendees were instructed not to arrive before 5:30 p.m., with the dinner starting at 7 p.m. and expected to last three hours.

Pinto said he doesn't know what his investment in $TRUMP will get him other than the dinner. He said he thinks the tokens will be usable in a digital Trump golf game that was announced in December and is expected to launch in June, according to a press release.

"There's a few things that I want to ask him," Pinto said. "I definitely want to find out if he's going to want to use this coin in the game. That's probably my top question, because not many people know about that game."

The Trump coin team didn't immediately respond to a request for comment.

Because crypto wallets are pseudonymous, most participants in the competition appeared only as three- to four-letter usernames linked to cryptographic wallet addresses. Many of the winners are tied to international exchanges, according to Inca Digital, raising concern that non-Americans may be paying for the opportunity to try to influence the U.S. president.

An analysis by Bloomberg revealed that 19 of the top 25 wallets, and more than half of the top 220, are almost certainly owned by individuals operating outside the U.S.

The competition drew an estimated $148 million in purchases from supporters around the world, according to Inca Digital. That's a massive fundraising haul for a digital asset launched just months ago.

Among those attending is Justin Sun, the Chinese-born founder of the TRON blockchain, who said this week that he is the contest's top-ranked investor.

At current prices, Sun's stake in $TRUMP is now worth more than $20 million. Sun was also one of the first major backers of World Liberty Financial, the Trump family's crypto venture, buying at least $75 million of its native token "WLFI."

In 2023, U.S. regulators accused Sun of illegally selling unregistered securities and artificially inflating token prices. A month into Trump's second White House term, a federal court filing showed that the Securities and Exchange Commission was in settlement talks with Sun to resolve the civil fraud charges.