Blumenthal launches probe into Trump’s crypto ventures
Letters sent to Trump memecoin and World Liberty Financial executives
Senate Democrat Richard Blumenthal has initiated a preliminary inquiry into President Donald Trump’s crypto connections. He raised concerns about potential conflicts of interest and legal violations.
As ranking member of the Senate Permanent Subcommittee on Investigations, Blumenthal sent formal inquiry letters Tuesday to executives at two Trump-associated crypto companies. Bill Zanker of Fight Fight Fight LLC, which manages the Official Trump memecoin, and Zach Witkoff of World Liberty Financial are the Trump firms that received an inquiry letter.
Growing Democratic Opposition to Trump’s Crypto Involvement
The investigation represents a new height in Democratic opposition to Trump’s extensive cryptocurrency business involvement since his presidential inauguration in January. Through his correspondence, Blumenthal demands comprehensive information regarding ownership structure, together with financial arrangements and conflict-of-interest mitigation strategies from both companies.
For the TRUMP memecoin, Blumenthal highlighted concerns about “pump and dump” volatility patterns and allegations that insiders profited substantially during its launch. He specifically criticized the “Dinner with Trump” promotion that promised top token holders an evening with the president. He called it an “unprecedented, pay-to-play scheme to provide access to the Presidency to the highest bidder.”
Regarding World Liberty Financial, Blumenthal alleged the Trump family has “reaped substantial financial benefits” from WLFI. His letter warned that the venture could invite investment from foreign governments and unscrupulous individuals, potentially creating national security threats.
The inquiry comes amid growing Democratic resistance to Trump’s cryptocurrency agenda. House Democrats boycotted a scheduled crypto industry hearing Tuesday, instead holding their own separate meeting.
Meanwhile, nine Senate Democrats recently announced they cannot support the proposed stablecoin regulation bill (Genius Act). They will not agree without stronger anti-money laundering provisions and restrictions on foreign issuers.
Representative Maxine Waters expressed particular concern about Trump launching his own stablecoin through WLFI. Waters stated, “I negotiated with my colleagues across the aisle for the past three years to create a safe regulatory framework for stablecoins. Now, we are pushing legislation through as quickly as possible without considering some of the key issues that will impact American investors and consumers.” The investigation represents the most direct challenge yet to Trump’s unprecedented cryptocurrency activities while serving as president.
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