House Democrats are demanding records related to suspicious financial activity involving President Donald Trump’s crypto projects. In a letter to Treasury Secretary Scott Bessent, top Democrats on three powerful House committees requested access to all suspicious activity reports (SARs) related to Trump’s new cryptocurrency ventures.

Donald Trump Crypto Ventures Under House Scrutiny

On May 14, senior House Democrats sent a formal request to Treasury Secretary Scott Bessent. The letter asked the Department of the Treasury to provide all suspicious activity reports linked to the Trump family’s cryptocurrency firm, World Liberty Financial (WLF), and Donald Trump-branded meme coins.

The request came from Ranking Members Rep. Gerald E. Connolly, Rep. Joe Morelle, and Rep. Jamie Raskin. They cited concerns regarding fraud, bribery, and illegal financial conduct. The request also includes SARs connected to WinRed, a Republican fundraising platform, and America PAC, a political action committee aligned with Elon Musk.

 “The Committees seek to determine whether legislation is necessary to prevent violations of campaign finance, consumer protection, bribery, securities fraud, and other anti-corruption laws” the lawmakers wrote.

They expressed concern that these crypto ventures may be used to mislead vulnerable individuals and allow foreign entities to influence U.S. officials.

Connection Between Crypto Backers and Alleged Misconduct

The letter pointed to investor Tron founder Justin Sun, a cryptocurrency entrepreneur, who reportedly invested $75 million into WLF. House Democrats noted that Sun purchased $45 million worth of WLF tokens in January. They also mentioned that the Securities and Exchange Commission (SEC) had recently asked the court to pause its enforcement action against Sun.

Democrats argue that the timing of Sun’s investment in Donald Trump’s projects and the SEC decision raises questions about improper influence or special treatment. Sun’s backing of WLF adds complexity to the case, given his history of regulatory challenges in the U.S.

Lawmakers also raised concerns about potential market manipulation and improper financial conduct linked to the Donald Trump crypto ventures. They questioned whether such financial vehicles might be used to bypass campaign finance laws or launder money.

Donald Trump Ties to Foreign Investment and Political Access

The request highlighted that WLF’s USD1 stablecoin would be used in a $2 billion deal involving Binance. MGX, an Abu Dhabi-based investment firm, will reportedly use the token in the agreement. This connection between Donald Trump-backed crypto assets and global financial institutions was flagged as an area requiring review.

Democrats said they disapproved of using Trump-branded memecoins to obtain political access. There are reports that the biggest holders of the memecoins got an offer to attend a private dinner with the president. Members of Congress questioned whether this sort of arrangement is allowed in terms of campaign finance laws.

There is growing unease over whether cryptocurrency could allow donations to politics without proper transparency and oversight. Comsequently, democrats requested a close examination of these practices.

Legislative and Regulatory Push Following New Allegations

Lawmakers’ recent attempts to set new rules for crypto and politics are what led to this inquiry. Rep. Torres introduced a bill last week that would stop presidents and members of Congress from making money off memecoins and stablecoins.

In addition, lawmakers last week rejected the GENIUS Act — a bill meant to establish federal rules for stablecoins — due in part to concerns that President Donald Trump’s personal cryptocurrency ventures have created an unprecedented conflict of interest.

Senator Elizabeth Warren and others have also requested more information about Trump’s reported connections to Binance. These initiatives come amid a wider push by lawmakers to increase scrutiny over the role of cryptocurrency in U.S. politics and financial systems.

Meanwhile, Trump has stated that he wants the U.S. to become a global leader in crypto. He claimed that the US is ahead of China in digital assets and suggested Bitcoin could be considered as a national reserve.

The post Donald Trump Crypto Ventures Under House Scrutiny for Fraud, Bribery Concerns: Report appeared first on CoinGape.

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Filed under: News - @ May 15, 2025 4:21 am