Former President Donald Trump’s enthusiastic embrace of cryptocurrency has taken center stage in both political and regulatory discussions. His simultaneous efforts to deregulate the crypto industry and expand his own crypto ventures—ventures that have already pulled in billions of dollars—are raising profound ethical, legal, and national security concerns. Watchdog groups, legal scholars, and lawmakers from both parties are questioning whether Trump is using his political platform to benefit personally, and whether his ventures open doors to improper foreign influence.
Trump’s promotion of his memecoin, known simply as $Trump, took a dramatic turn on May 22, when he hosted two exclusive events at his Virginia golf club for the token’s top investors. A total of 220 buyers were invited to a private dinner, while the top 25 investors were promised a more exclusive reception. According to Inca Digital, these events brought in approximately $148 million—money that directly benefits Trump and his partners. Critics argue this is a clear example of pay-for-access and the monetization of political influence.
The ethical concerns are magnified by Trump’s family’s growing involvement in World Liberty Financial (WLF), a crypto firm launched last fall and promoted heavily by Eric and Don Jr. WLF has recently become a central player in a $2 billion investment deal with an Abu Dhabi financial fund and the crypto exchange Binance, which pleaded guilty in 2023 to serious U.S. financial crimes. Trump’s visit to the UAE shortly after his son’s attendance at a crypto conference in Abu Dhabi further complicates matters, suggesting the possibility of improper foreign lobbying or influence.
Trump’s Rapid Crypto Gains Spark Legal Warnings Over Corruption And Regulatory Capture
A recent report from the State Democracy Defenders Fund found that Trump’s crypto ventures were already worth about $2.9 billion by March 2024. This staggering growth in less than a year has triggered alarms, especially as it coincides with Trump’s push to overhaul crypto oversight. Senate Democrats, led by Jeff Merkley and Chuck Schumer, introduced the End Crypto Corruption Act to prohibit Trump or other public officials from profiting off crypto businesses while holding office. Critics say Trump’s actions blur the line between public service and private profiteering.
Trump’s Crypto Empire Raises Alarms Over Corruption, Foreign Influence, and Regulatory ManipulationFormer White House ethics counsel Richard Painter and Columbia law professor Richard Briffault are among many experts sounding the alarm. Painter called Trump’s actions a “reality if not the appearance of corruption,” while Briffault said Trump is “marketing access to himself” through crypto sales—calling the scheme “doubly corrupt” and unprecedented in U.S. political history. The overlap between Trump’s political ambitions and his crypto ventures, these experts say, creates risks of undue influence and regulatory capture.
Under Trump’s watch, the Securities and Exchange Commission (SEC) has taken a noticeably softer stance toward the crypto industry. Investigations into more than a dozen crypto firms have been dropped or delayed. One of the most contentious cases involves Chinese-born crypto mogul Justin Sun, the top $Trump coin buyer and a leading investor in WLF. Sun, who was sued by the SEC for fraud and market manipulation in 2023, saw his case paused by the agency this year. Lawmakers like Elizabeth Warren and Maxine Waters have asked whether Sun’s financial relationship with Trump played a role in this decision.
Foreign Funds Dropped Enforcement And Pardons Raise Grave Corruption Concerns In Crypto
Adding fuel to the fire, the Justice Department in April quietly disbanded its national cryptocurrency enforcement team, originally formed to investigate criminal use of digital assets, including by North Korean hackers. The department cited a shift in priorities and criticized what it called the Biden administration’s “regulation by prosecution.” However, many interpreted the decision as a response to Trump’s pro-crypto stance, reflected in an executive order issued earlier this year calling for broader crypto adoption and reduced oversight.
While the identities of most $Trump coin holders remain hidden, crypto analysts estimate that a significant share of the top wallets belong to foreign buyers. Bloomberg analysis suggests that 19 of the top 25 $Trump investors are likely based outside the United States. Justin Sun, who alone bought nearly $20 million worth of $Trump coins, attended the May 22 dinner. Another top buyer, MemeCore, a Singapore-based network, invested $18 million. These figures have fueled fears that foreign actors are using crypto to gain access to Trump and potentially influence future policy decisions.
WLF’s latest product, a stablecoin named USD1, is now a core component of a $2 billion investment involving the Abu Dhabi fund and Binance. Binance’s former CEO, Changpeng Zhao, recently completed a prison sentence for money laundering violations and has publicly stated he is seeking a pardon—possibly from a future Trump administration. The possibility of financial favors or political pardons linked to crypto investment has stirred intense concern among lawmakers, who warn it could set a dangerous precedent.
Democrats such as Jamie Raskin have warned that Trump’s crypto dealings could provide a pathway for secret donations from foreign governments, corporations, and wealthy individuals. The lack of transparency in crypto transactions makes it difficult to trace the flow of funds, creating a “perfect storm” for corruption. Legal scholar Larry Noble echoed these concerns, calling Trump’s ventures a “roadmap for corruption” and a serious threat to both democracy and national security. Even former Republican Congressman Dave Trott said Trump’s actions represent a new level of self-dealing and warned that many in the GOP are turning a blind eye.
