In the US, Democrats have initiated an investigation into cryptocurrency projects associated with Donald Trump amid potential ethical violations. One of the key elements of this process has been sending letters to the heads of Fight Fight Fight LLC and World Liberty Financial, demanding financial documents and responses to specific questions.
This is reported by Finway
Investigation Led by Senator Blumenthal
Senator Richard Blumenthal, who is the chair of the Democrats on the Permanent Subcommittee on Investigations (PSI) of the US Senate, has initiated a preliminary investigation into Trump’s cryptocurrency activities. He has sent official inquiries to the leaders of the mentioned companies, asking about their operations and financial reporting. Specifically, this concerns:
- Fight Fight Fight LLC — the company that issued the meme coin TRUMP;
- CIC Digital LLC — co-author of TRUMP and issuer of Trump’s NFT;
- Celebration Cards LLC — another project involving Trump NFT;
- DTTM Operations LLC — manages Trump’s intellectual property rights;
- World Liberty Financial (WLFI) and its associated firms.
Overall, the investigation pertains to potential violations of state ethics, connections with foreign investors, and involvement in schemes that involve “pay-to-access the president.” The letters state that “PSI is conducting a preliminary investigation into possible conflicts of interest and violations of law in connection with President Trump’s cryptocurrency activities and the financial operations of related companies with foreign individuals, governments, and crypto firms.”
Ban on Issuing Meme Coins
Senator Blumenthal has expressed concerns regarding issues such as the identification of foreign investments, the share of profits going to companies, and the involvement of individuals who are under investigation or wanted. Currently, the investigation has become particularly relevant as rumors have emerged about a possible $2 billion deal between the Abu Dhabi-based investment fund MGX and the Binance exchange, in which the USD1 stablecoin associated with the Trump brand may play a key role.
Despite the seriousness of the situation, the Democrats, being in the minority in the Senate, do not have the ability to issue subpoenas without support from Republicans, including the subcommittee chair Ron Johnson. In response to this scandal, Democratic Senator Chris Murphy has proposed a new MEME bill that would prohibit the president and members of Congress from issuing meme coins or other financial assets. Murphy stated, “Trump Coin is the biggest corruption scandal in White House history.”
Additionally, Congresswoman Maxine Waters, who leads the Democrats on the House Financial Services Committee, has also criticized Trump’s crypto projects, emphasizing the importance of transparency in stablecoins through the legislative initiative “Stablecoin Transparency and Accountability for a Better Ledger Economy.” Together with Senator Elizabeth Warren, they sent a letter to the US Securities and Exchange Commission demanding information about Trump’s connections to the WLFI project.