Senate Investigates US President's Cryptocurrency Activities

Senate Investigations Subcommittee Member, Democrat Richard Blumenthal, has announced the launch of an analysis of possible ethical violations by US President Donald Trump through his connection to cryptocurrency initiatives. This is reported by The Block.

The politician sent inquiries to Fight Fight Fight LLC, a company associated with the TRUMP memcoin, and Zach Whitkoff, a representative of the World Liberty Financial (WLFI) crypto lending platform. The main goal of the investigation was to determine whether the activities of these projects violate federal laws and create conditions for conflicts of interest or threats to national security. Blumenthal pointed out that the president and his entourage could have benefited financially from the launch of WLFI and the TRUMP memcoin. He emphasized that the participation of foreign investors in these projects is potentially illegal and creates risks of influence on US policy by unfriendly states or individuals.

The senator paid special attention to the volatility of TRUMP, which has repeatedly demonstrated sharp jumps and falls in price. In his opinion, this indicates possible market manipulation, beneficial to a small circle of insiders. Blumenthal was especially concerned about an event organized for the largest TRUMP holders: 220 investors were given the opportunity to have dinner with the president on May 22. The senator called it a "pay-for-access scheme": according to him, the action is designed to artificially maintain interest in the token in the face of falling demand.

In his letters, the senator demanded that the companies disclose financial information and explain measures to prevent conflicts of interest. He also noted that WLFI, which belongs to the Trump family, could become a channel for illegally influencing foreign policy by attracting foreign capital.

Recall that in an interview with NBC News, US President Donald Trump commented on criticism from Democrats who accuse him of receiving indirect benefits from promoting the TRUMP memcoin. The head of the White House said that he does not follow the fate of the token and does not personally profit from its growth.