Trump’s crypto ventures spark ethics probe over transparency and security

Donald Trump faces scrutiny as US Rep. Connolly calls for an ethics probe into his crypto ties, raising concerns over transparency and national security.

Donald Trump’s involvement in cryptocurrency ventures has sparked calls for a formal ethics investigation, led by US Representative Gerald Connolly. Concerns are growing over potential conflicts of interest and transparency issues surrounding Trump’s financial ties, particularly regarding his role in the crypto project World Liberty Financial (WLF) and the launch of the "TRUMP" meme coin.

Connolly has written to the House Oversight and Government Reform Committee, urging an inquiry into whether Trump’s crypto-related activities violate ethics and transparency standards. He warns that these ventures could compromise national security and allow foreign entities to gain undue influence.

At the center of the controversy is WLF, a cryptocurrency initiative tied to Trump’s vision of financial independence. Reports reveal that Justin Sun, the founder of Tron and a figure under investigation by the SEC for alleged securities fraud, invested $30 million in WLF tokens. Connolly claims this investment helped WLF meet its revenue goals, possibly directing funds to Trump and his family. The congressman describes these financial connections as troubling, raising questions about ethical and legal boundaries under the Presidential Ethics Reform Act.

In addition to WLF, Trump’s personal cryptocurrency, the TRUMP meme coin, has raised alarms. The coin, launched shortly before Trump’s inauguration, surged dramatically in value, reaching a fully diluted valuation close to $40 billion. Despite its initial success, its value has fluctuated, recently trading around $37.93. When asked about the coin, Trump appeared unfamiliar with its specifics, stating only that it was “very successful.”

Critics argue that the TRUMP meme coin could be used to bypass national security and anti-corruption laws. Congresswoman Maxine Waters has labeled it “the worst of crypto,” emphasizing its potential to allow anonymous financial transactions that could benefit Trump’s circle or sanctioned individuals. She further warned that such tools create avenues for global entities to trade and profit without oversight.

Connolly’s letter also highlights the broader implications of these ventures, including concerns about quid pro quo arrangements tied to Trump’s financial dealings. While WLF tokens reportedly offer no tangible financial returns, Connolly warns that they enable foreign entities to curry favor with Trump and his organization.

These developments underscore the need for immediate action to evaluate Trump’s involvement in the crypto space and ensure that national security and transparency laws are upheld. Connolly insists that without a thorough investigation, such entanglements could pose significant risks to ethical governance.