‘Roadmap for corruption': Trump dive into cryptocurrency raises ethics alarm
Watchdog groups, congressional Democrats and some Republicans have levelled a firestorm of criticism at Trump for hawking his own memecoin $Trump, a novelty crypto token with no inherent value, by personally hosting a 22 May dinner at his Virginia golf club for the 220 largest buyers of $Trump and a private 'reception' for the 25 biggest buyers.
To attend the two events, the $Trump buyers spent about $148m, which will benefit Trump and partners, according to the crypto firm Inca Digital.
Related: Trump to host dinner for top holders of his crypto token – although many lost money with it
Further, the Trump family crypto venture World Liberty Financial that launched last fall, which his two oldest sons have promoted hard, was tapped this month to play a key part in a $2bn investment deal by an Abu Dhabi financial fund in the crypto exchange Binance which in 2023 pleaded guilty to US money laundering and other violations.
The new WLF deal was announced at an Abu Dhabi crypto conference that drew Eric Trump two weeks before Trump's mid-May visit to the United Arab Emirates capital, sparking other concerns of improper foreign influence and ethics issues.
Trump's ardent pursuit of crypto fortunes was highlighted in a report last month from the watchdog group State Democracy Defenders Fund that estimated his crypto ventures as of mid-March to be worth about $2.9bn. That is a striking sum since Trump's crypto ventures are less than a year old.
Senate Democrats led by Jeff Merkley of Oregon and the minority leader, Chuck Schumer of New York, introduced a bill this month that has garnered sizable Democratic backing to block Trump from using his office to benefit his crypto businesses.
Watchdogs say Trump is exploiting his office for personal gain in unprecedented and dangerous ways.
'There is the appearance if not the reality of corruption in the upcoming dinner with Trump on the 22nd at his Virginia golf club for the 220 biggest Trump meme coin buyers and the private reception he's promised for the top 25 buyers, plus the separate $2bn deal between World Liberty Financial and the Abu Dhabi investment vehicle,' said Richard Painter, a former White House ethics adviser to President George W Bush who co authored the Democracy Defenders Fund report.
This is unprecedented. I don't think there's been anything like this in American history
Professor Richard Briffault
Other experts are equally troubled by Trump's manifest conflicts.
'Trump is marketing access to himself as a way to profit his memecoin,' said the Columbia Law professor Richard Briffault, an expert on government ethics. Briffault added: 'People are paying to meet Trump and he's the regulator in chief. It's doubly corrupt. This is unprecedented. I don't think there's been anything like this in American history.'
Such concerns were fueled when Trump quickly chose crypto industry allies to run the Securities and Exchange Commission and as his 'czar' for crypto and AI. Among other moves, the SEC has dropped or put on hold investigations and prosecutions of over a dozen crypto firms.
Fears of possible corruption have also focused on Chinese born Justin Sun, the biggest investor in Trump's crypto ventures. Sun bought about $20m of $Trump to become its top purchaser before the dinner on the 22nd which he attended. Sun previously invested at least $75m in World Liberty Financial to become its lead investor and an adviser.
Sun may also be benefiting from the SEC's laxer oversight. Sun was sued by the SEC in 2023 for fraudulent market manipulation and other allegations of misconduct involving three other crypto enterprises of his, including the Tron Foundation.
As the SEC eased its crypto oversight, the agency earlier this year paused its case against Sun, sparking concerns that Trump's financial ties to Sun might have influenced the agency's decision, a matter that Senator Elizabeth Warren of Massachusetts and the Democratic congresswoman Maxine Waters of California raised in a letter to the SEC last month.
The SEC has reportedly been holding talks with Sun about settling the charges, and the agency's chairman told a congressional hearing on 20 May that he knew nothing about Sun's case.
Other warnings about Trump's crypto dealings have also been fueled by recent scandals that have plagued crypto businesses, many of which are known for their opaque operations and some illicit dealings including ones tied to North Korean hackers that helped fund the country's nuclear and military programs.
Crypto critics were dismayed at a justice department memo in April announcing the closure of a national cryptocurrency enforcement team that was established in 2022, which had brought some major crypto cases against North Korean hackers and other crypto criminals.
The memo stressed the justice department was not a 'digital assets regulator' and in a political twist lambasted the Biden administration for its 'reckless strategy of regulation by prosecution'. The memo noted that a January pro-crypto Trump executive order spurred its decision.
For their part, Trump, his family and White House press statements have dismissed concerns about conflicts of interest or ethical improprieties with Trump promoting his crypto business while in office.
The press secretary, Karoline Leavitt, told reporters before the dinner that Trump was attending it in his 'personal time' and it was not a White House event, but declined to release names of the attenders.
The Trump Organization in January said that the president's business interests including his assets and investments, would be placed in a trust that his children would manage and that Trump would not get involved in decision-making or daily operations. Trump's family also tapped a lawyer to serve as an ethics adviser.
Those pledges have been overshadowed by Trump's enthusiasm for his digital currencies. In a harbinger of Trump's two crypto events on the 22nd, in March he hosted the first-ever White House 'crypto summit', for a couple of dozen industry leaders where he pledged to end the Biden administration's 'war on crypto'.
'Trump's crypto schemes are profoundly corrupt,' Merkley told the Guardian 'He's selling access to his administration and enriching himself in the process.'
In response, Merkley and Schumer introduced the End Crypto Corruption Act, which 20 other Democrats have endorsed.
Merkley stressed that the bill would 'not only crack down on this corruption but also prevent other officials – like members of Congress and Trump's billionaire sidekick Elon Musk – from betraying public trust'.
Merkley's warnings have been echoed by several watchdogs.
'Trump's dealings in crypto appear to present the greatest conflicts of interest and avenues for corruption any president has ever embraced,' said Larry Noble, a former general counsel at the Federal Election Commission who now teaches law at American University.
Noble's alarms are underscored by the large number of foreign buyers who appear to have scooped up Trump's memecoin to win coveted spots at his dinner.
While the identities of most $Trump purchasers are unknown, several reports from crypto analysts who track the industry suggest that a large number of foreign buyers have ponied up tens of millions of dollars to buy $Trump coins and attend the dinner.
One analysis by Bloomberg has indicated that 19 of the top 25 crypto wallets are almost definitely owned by individuals who operate outside the US.
Sun, who bought $4.5m of his almost $20m in $Trump coins after Trump announced the events on the 22nd, showed his appreciation by posting on X on 19 May: 'Honored to support @POTUS and grateful for the invitation from @GetTrumpMemes to attend President Trump's Gala Dinner as his TOP fan!'
Besides Sun, the second biggest buyer is reportedly MemeCore, a Singapore-based crypto network that was vocal about its interest in attending the Trump dinner and invested $18m.
Trump's avid embrace of crypto became palpable last summer at a bitcoin conference where he pledged to make the US the 'crypto capital of the world', a marked shift from 2021 when he dismissed bitcoin as a 'scam'. The change helped his campaign pull in millions of dollars in crypto industry donations.
Last fall, Trump and his two older sons, Eric and Don Jr, announced on the multibillionaire Elon Musk's X that they were launching World Liberty Financial.
Trump on X boasted opaquely that 'crypto is one of those things we have to do. Whether we like it or not, I have to do it.' A white paper for the new business dubbed Trump 'its chief crypto advocate', and his sons have promoted it aggressively and helped to lure new investments.
Reuters reported in late March, that World Liberty Financial had raised over $500m in recent months. Trump's family now controls the bulk of its business and Reuters revealed that it is entitled to about $400m in fees and 75% of revenues from WLF's token sales.
The recent $2bn investment deal that WLF will be part of with the Abu Dhabi fund and Binance is the latest big financial coup for Trump and his sons, but one that's raised some red flags given legal problems that have previously beset Binance.
The Abu Dhabi fund MGX , which has backing from the UAE government, according to reports is slated to use a stablecoin product that WLF is now marketing to help complete its $2bn investment deal in Binance. A stablecoin is a cryptocurrency pegged to a traditional currency, or a more stable asset such as the dollar.
The WLF stablecoin, dubbed USD1, will be used by MGX to invest in Binance, the world's largest cryptocurrency exchange that operates in dozens of countries; on 22 May Binance also announced that it would list WLF's USD1 for trading.
Previous legal problems for Binance may attract new attention, say critics including congressional Democrats. Binance's ex-CEO and founder, Changpeng Zhao, in late 2023 pleaded guilty in the US to violating the Bank Secrecy Act and failing to maintain an effective anti-money-laundering program at Binance, which also copped a guilty plea to criminal charges and paid over $4bn in fines.
Zhao, who served a four-month prison term last year and still owns 90% of the firm, revealed on a podcast on 5 May that he was seeking a pardon from the Trump administration, which several senators raised questions about in a 15 May letter to top justice department officials.
Before WLF's role with the Abu Dhabi fund's investment in Binance and to grow its crypto empire, WLF unveiled its first stablecoin in March, as a stablecoin Senate bill – dubbed 'the Genius Act', which critics say eases regulatory controls too much – moved closer to passing.
Watchdog groups and some Democrats including Warren have warned that the Senate bill's regulations are too lax to prevent fraudulent uses, as new studies have noted that these coins and other digital assets are increasingly being used for money laundering by Chinese exporters and producers of fentanyl and other synthetic drugs.
Trump has taken corruption and self-dealing to a new level,
Former Republican congressman Dave Trott
Republicans in Congress have been largely silent about Trump and his family capitalizing on their crypto ventures to enrich themselves. But the Wyoming Republican senator Cynthia Lummis, a lead sponsor of the Genius Act, which on 19 May notched a key vote towards Senate passage and would also benefit WLF's stablecoin, has said the upcoming $Trump events have given her 'pause'.
Some former Republican members are livid about Trump's crypto dealings.
'Trump has taken corruption and self-dealing to a new level,' said the ex-Republican congressman Dave Trott of Michigan. 'He seems singularly motivated to deregulate the crypto industry for the financial benefit of himself and his family, and few Republicans are calling him out.'
Trott said he was weighing a run for Congress in 2026 as an independent or a Democrat. 'I wish I was still in Congress so I could vote to impeach the guy,' he added, referring to Trump.
Further, leading House Democrats say Trump's presidency is benefiting his burgeoning crypto business in dangerous ways.
'Trump's personal and family net worth has gone up by billions of dollars this year due to crypto ventures,' said the Democratic representative Jamie Raskin from Maryland. Raskin warned that Trump's crypto ventures offered the 'perfect opportunity for foreign government, corporate and individual funds to be funneled into Donald Trump's bank account and his family's finances'.
Likewise, Noble foresees national security and other dangers with Trump and his family's fast-growing crypto businesses.
'World Liberty Financial and $Trump appear to allow foreign governments, corporate interests and wealthy private donors who want something from Trump to secretly add to his wealth. This is a roadmap for corruption. What they want in return for their investments may present real dangers to our economy and national security.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
Hive Pro Releases Eagerly Anticipated Report: "Cyber Horizons 2025"
HERNDON, Va., July 10, 2025 /PRNewswire/ -- Hive Pro Inc., the pioneer vendor in Threat Exposure Management, today released its annual and landmark threat intelligence report, Cyber Horizons 2025, developed by its in-house research division, HiveForce Labs. This expansive publication offers a data-rich, forward-looking view into the evolving cyber threat landscape based on analysis of over 40,000 vulnerabilities, adversary behaviors, and incident telemetry from enterprise environments around the world. Drawing on global intelligence across sectors from healthcare to energy, finance to manufacturing, the report unpacks the increasingly adaptive, AI-driven, and multi-pronged nature of modern cyber threats. Among the key findings: ransomware rose by 21% in 2024, AI-enabled phishing surged, and over 83 zero-day vulnerabilities were actively exploited in real-world campaigns. "Threats in 2025 are faster, smarter, and more relentless than ever," said Ankit Mani, Lead Threat Intelligence Researcher at Hive Pro. "This year, we saw exploits weaponized in minutes. Without real-time threat intelligence integrated into exposure management, organizations risk falling dangerously behind." Cyber Horizons 2025 aims to equip organizations with actionable intelligence to adapt. It calls for a decisive shift from reactive cybersecurity to exposure-centric defense strategies, including continuous control validation, integrated threat modeling, and real-time attack surface visibility. "The traditional security perimeter no longer exists," said Purvi Garg, VP of Products and Innovation at Hive Pro. "What were once edge cases, like identity, cloud, and supply chain, have become the primary battlegrounds. Our report highlights the urgency of aligning security priorities with business risk and operational context. Through the rich data we provide, our goal is to give security leaders clarity and a smarter path forward. It's imperative, now more than ever." Cyber Horizons 2025 is a strategic guide for CISOs, SOC teams, and board-level decision-makers looking to build resilience in a time of increasing unpredictability. No matter the role, this report offers detailed forecasts on topics everyone is curious about, from threat actor trends, and zero-day readiness to AI weaponization and sector-specific insights. The full report is available for download here. About Hive ProHive Pro is the pioneering vendor of Threat Exposure Management through Uni5 Xposure, an end-to-end platform that identifies where organizations are exposed to active threats, tests how security controls perform against potential exploitation, and guides cross-functional teams in eliminating high-priority exposure points. While headquartered in Virginia, USA, Hive Pro has a global presence spanning North America, EMEA, and APAC. View original content to download multimedia: SOURCE Hive Pro Inc
USA Today
34 minutes ago
- USA Today
Trump says FBI's Dan Bongino is 'in good shape' amid Jeffrey Epstein probe fallout
WASHINGTON — President Donald Trump said he spoke to Deputy FBI Director Dan Bongino and that the law enforcement official was "in good shape" amid the fallout following the Justice Department and FBI's announcement they have found no evidence that convicted sex offender Jeffrey Epstein kept a "client list." Bongino was weighing his future with the bureau after clashing with Attorney General Pam Bondi over the Epstein case files, CNN and Semafor reported. Conservative influencers have criticized Bondi and FBI Director Kash Patel for their findings, which came months after Bondi pledged to reveal major revelations about Epstein, including "a lot of names" and "a lot of flight logs." Asked by reporters on July 13 if Bongino was still his deputy FBI director, Trump told reporters: "Oh I think so. I did, I spoke to him today. Dan Bongino, very good guy. I've known him a long time. I've done his show many, many times. And he sounded terrific, actually. No, I think he's in good shape." The former Secret Service agent and conservative media personality gave up his podcast to join the Trump administration in March. The Justice Department released a report last week that said a "systematic review" of the disgraced financier "revealed no incriminating 'client list.'" The disclosure and Trump's subsequent defense of Bondi had the president's grassroots supporters and far-right figures up in arms. MAGA supporters were enraged with Bondi over a statement she made on Fox News earlier in the year after she was asked about Epstein's client list and said that it was "sitting on my desk right now to review." Bondi told reporters on July 8 at a White House meeting: "I was asked a question about the client list and my response was, 'It's sitting on my desk to be reviewed,' meaning the file, not the client list." Trump had Bondi in his box on July 13 at the FIFA Club World Cup just before he spoke to reporters. Trump said on Truth Social that the FBI "must be focused on investigating" other alleged crimes instead of "spending month after month looking at nothing but the same old, Radical Left inspired Documents on Jeffrey Epstein." Bongino has not commented publicly on the reports of his future at the bureau. FBI Director Kash Patel said in an X post on July 12 that he planned to stay in his position. MAGA split: Trump rips 'so-called' friends' attacks on Bondi, tells MAGA to move on from Epstein Contributing: Aysha Bagchi, USA TODAY; Reuters
Yahoo
36 minutes ago
- Yahoo
Posts share hoax report Trump ordered 'total border shutdown'
"President Donald Trump order (sic) full borders shut down people may be locked out of the US," reads the caption of a Facebook reel shared on July 3, 2025. The video appears to show a news report featuring a voiceover that says the US president signed "one of the most extreme executive orders in US history", enacting a "total border shutdown" from July 1 with no set reopening date. "No one goes in, no one comes out. Not even legal residents with full documentation," it says. Similar videos were shared elsewhere on Facebook. "If this is true, it will be the end of tourism in America!" read a comment on one of the posts. Another said: "This reeks of martial law in America, they're getting strict. I hope this isn't true." The posts surfaced after Trump revived his first-term travel ban on June 4, barring entry to people from 12 countries, including Afghanistan, Iran, Libya and Somalia (archived link). The proclamation also covers Burma, Chad, Congo, Eritrea, Haiti, Sudan, Yemen and Equatorial Guinea. The list results from a January 20 executive order Trump issued requiring the departments of State and Homeland Security and the Director of National Intelligence to compile a report on "hostile attitudes" towards the United States and whether entry from certain countries represented a national security risk. Trump issued an executive order during his first term in January 2017 banning travel to the United States by citizens of seven predominantly Muslim countries -- Iraq, Syria, Iran, Sudan, Libya, Somalia and Yemen. But as of July 13, there have been no official reports or announcements from either the White House or the US Federal Register announcing a "total border shutdown" (archived here and here). A reverse image search on Google using keyframes from the falsely shared video led to the same clip posted on June 29 by a user who frequently posts misinformation about US politics framed as "breaking news". Further reverse image searches found the clip of Trump holding up a signed executive order was also posted on CBS News's Instagram on May 20 (archived link). "President Trump signed a bipartisan bill into law that makes it a federal crime to post real and fake sexually explicit imagery online of people without their consent," reads the video's caption. An analysis of the audio used in the false posts using the Hiya voice cloning detection tool from The Verification Plug-in (formerly known as InVID-WeVerify) found it was "very likely AI-generated". AFP has debunked other misinformation related to Trump here.
