Senate Investigates Trump’s Crypto Chaos – Is This What You’ve Been Waiting For?

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The US Senate’s Permanent Subcommittee on Investigations (PSI), under the ever-enthusiastic guidance of Democrat Richard Blumenthal, has decided it’s time to peer into President Trump’s latest adventure in the world of crypto. What could possibly go wrong? Absolutely nothing, right?

That’s right, folks. The Senate has launched a formal inquiry into President Trump’s crypto ventures, with a keen focus on potential conflicts of interest and possible violations of federal ethics laws. It’s all about that “Official Trump (TRUMP) token” and the ever-so-dignified “World Liberty Financial (WLFI)” project. No, this is not a joke, although it certainly sounds like one.

TRUMP Meme Coin and World Liberty Financial Face Senate Scrutiny

In an impressive move of bureaucratic efficiency, Blumenthal sent not one, but two letters on May 6, directed to Bill Zanker of Fight Fight Fight LLC (yes, that’s really the name) – the mastermind behind the TRUMP meme coin, and Zach Witkoff, co-founder of the Trump-backed WLFI.

“The Permanent Subcommittee on Investigations (“PSI” or “the Subcommittee”) is conducting a preliminary inquiry into potential conflicts of interest and violations of the law from President Trump’s cryptocurrency ventures,” both letters ominously read.

Reports have emerged that both Fight Fight Fight LLC and WLFI may be dabbling in ethically questionable practices. Apparently, their operations might involve giving foreign governments and shady individuals a chance to invest – and let’s be clear, that’s a BIG red flag. You don’t want that flag, trust me.

Of course, there’s also the small matter of the foreign emoluments clause in the US Constitution, which prohibits US officials from accepting payments or gifts from foreign governments without a hearty thumbs-up from Congress. Small detail, right?

Let’s start with Fight Fight Fight LLC and their crypto creation, the TRUMP meme coin. After a Trump endorsement, the coin’s value shot up faster than you can say “pump and dump,” before crashing down just as spectacularly. I know, shocker.

“This mirrors the classic ‘pump and dump’ scenario, where insiders make a tidy profit before everything falls apart,” Blumenthal noted with that all-knowing tone we’ve come to love.

In a particularly creative move, the company promoted a “Dinner with Trump” initiative to revive interest in the crypto. Of course, this sparked another surge in the coin’s price – the kind of surge that only happens when something very fishy is going on.

But the real kicker? The letter describes Trump’s involvement in the coin as a “pay-to-play scheme” that lets the highest bidder get cozy with the presidency. Truly, what a novel approach to governance!

“President Trump’s financial entanglements to the TRUMP coin, as well as the attempted use of the White House to host competitions to prop up the value of TRUMP, represents an unprecedented, pay-to-play scheme to provide access to the Presidency to the highest bidder,” the letter added. As if we didn’t already know that.

Meanwhile, WLFI is also under fire. The company has listed President Trump as its “Chief Crypto Advocate” (naturally), and his sons – Eric, Donald Jr., and Barron – are proudly serving as “Web3 Ambassadors.” That’s Web3, as in the futuristic blockchain thing that promises to change the world…or not.

“President Trump’s financial ties to WLFI allow and invite anyone in the world, including foreign governments and unscrupulous individuals, to directly enrich the President and his family, while hiding potential payoffs in the pseudonymity of the blockchain,” Blumenthal asserted, sounding very serious.

Despite WLFI’s promises of revolutionizing stablecoins and decentralized finance, it’s been accused of accepting large investments from foreign nationals. Because who doesn’t love a good international crypto scandal?

Take, for example, the $75 million investment from Justin Sun, the founder of TRON, who is currently in hot water with the SEC over market manipulation allegations. Oh, and let’s not forget WLFI’s involvement in a $2 billion project with Binance, which recently admitted to breaking laws – but hey, no big deal, right?

Additionally, DWF Labs, with their questionable market practices, invested $25 million, and it turns out they’re linked to Russian banks. What could possibly go wrong here?

“WLFI’s financial entanglements with President, his family, and the Trump Administration present unprecedented conflicts of interest and national security risks, including potential violations of the foreign emoluments clause,” the letter ominously stated. But really, who’s counting?

The Subcommittee is now investigating both companies. They’ve requested detailed records from both Fight Fight Fight LLC and WLFI about their ownership structures, financial relationships with Trump-affiliated entities, and any possible communications with foreign governments. I’m sure the companies will be very forthcoming with that information.

But wait, there’s more! The Subcommittee is also checking whether either firm has taken sufficient measures to prevent insider trading, foreign influence, and the violation of US sanctions and anti-money laundering laws. Because, you know, that’s kind of important.

Senator Murphy Slams TRUMP Crypto as ‘Corrupt’ and ‘Unethical’

Meanwhile, Senator Chris Murphy is just thrilled about the whole situation. He and Congressman Sam Liccardo of California recently introduced the Modern Emoluments and Malfeasance Enforcement (MEME) Act. Yes, MEME. Because nothing says serious legislation like an acronym based on internet humor.

This bill would prevent the President, Vice President, members of Congress, senior Executive Branch officials, and their families from endorsing or issuing digital assets, including meme coins. You know, because meme coins don’t exactly scream “high ethics.”

Senator Murphy has pulled no punches in his criticism of the TRUMP meme coin, calling it “the most unethical, the most corrupt thing a President of the US has done.” Ouch.

“It’s essentially a way for any corporate CEO, any Saudi prince, any foreign oligarch who has business before the Trump administration to send Trump money privately, secretly, and then whisper to the Trump administration about how much money they have sent in the favor that they need,” the Senator said. Well, that’s one way to make politics interesting.

Blumenthal’s investigation and the MEME Act signal a growing effort by Democratic lawmakers to tackle the ethical mess that is cryptocurrency in politics. The White House, predictably, has yet to respond to the investigation or the proposed legislation. But hey, we’ll see how this all shakes out, won’t we?

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2025-05-07 11:06