In the face of the Trump administration’s persistent attacks on diverse organizations and institutions, it is vital to remain steadfast in holding Trump accountable for his alleged corruption and disregard for the law. Recently, the New York Times reported that Steve Witkoff, serving as Trump’s representative to the Middle East, reportedly orchestrated a multi-billion dollar agreement with Sheikh Tahnoon bin Zayed Al Nahyan. Sheikh Tahnoon is a member of the immensely wealthy ruling family of the United Arab Emirates, which oversees a staggering $1.5 trillion in sovereign wealth.
As part of the arrangement, Sheikh Tahnoon’s investment firm is set to deposit $2 billion into World Liberty Financial, a cryptocurrency startup founded by the Witkoffs and the Trump family. In exchange, the White House has granted the UAE—particularly a major technology firm under Sheikh Tahnoon’s control—access to a significant supply of scarce and advanced computer chips, raising concerns over national security and the potential for these chips to be disseminated to China.
Uncovering Deeper Crypto Corruption
This situation merely scratches the surface of Trump’s alleged involvement in crypto-related corruption. To fully grasp the situation, one must look back to just four days before the onset of early voting in 2024 when Trump and his sons established World Liberty Financial. Following Trump’s election victory, investments began to flood into the company. Shortly before his return to office, Trump also initiated a separate cryptocurrency venture, marketing TRUMP and MELANIA memecoins. Memecoins are a category of cryptocurrency that typically derive their appeal from a meme or humorous concept.
In a bid to bolster the cryptocurrency market, Trump called for the creation of a “Crypto Strategic Reserve” within his first six weeks in office. This initiative aimed to stockpile crypto assets, akin to the strategic reserves maintained for oil, though many critics deemed it unnecessary. Following this announcement, cryptocurrency values experienced a significant surge.
To date, the Trump family has reportedly amassed around $3 billion from cryptocurrency ventures, with a notable portion of these transactions attributed to foreign investors. According to Forbes, more than half of Trump’s total net worth is now linked to cryptocurrencies. The dual roles of Trump as both the President of the United States and a promoter of his personal crypto brand create a blurred line between his official duties and personal financial interests.
Questionable Political Influence and Connections
One American company has explicitly revealed that it acquired $2 million worth of Trump’s meme coins to sway trade policy decisions. The corruption extends beyond mere investments. Trump’s appointment of pro-crypto SEC chair Paul Atkins, who has substantial personal investments in cryptocurrency, raises further ethical concerns. Under his leadership, financial regulations have been relaxed, facilitating the entry of crypto firms like those associated with Trump into new markets while turning a blind eye to fraudulent activities within the sector.
Notably, Chinese billionaire Justin Sun, who faced allegations of crypto-related fraud before Trump’s presidency, invested over $115 million into various Trump-related crypto products after Trump took office. Subsequent to this investment, Trump’s SEC abruptly ceased its prosecution of Sun and dropped a case against Binance, a cryptocurrency exchange previously found guilty of money laundering, just days after Binance began listing a Trump cryptocurrency.
Legislative Support for the Crypto Industry
The corruption narrative continues to unfold, with Trump’s Justice Department dismantling the National Cryptocurrency Enforcement Team, effectively giving a green light to rampant crypto crime. This lack of oversight comes in the wake of American losses totaling $9.3 billion in crypto scams throughout 2024. The cryptocurrency industry has poured significant funds into congressional races, supporting both Republican and Democratic candidates, in hopes of securing the passage of the GENIUS Act—a regulatory measure heavily lobbied for by the crypto sector. This bill saw support from 18 Democrats alongside nearly all Republicans.
The GENIUS Act legitimizes “stablecoins,” a form of digital currency produced by Trump’s World Liberty Financial. Stablecoins purport to offer greater stability by being pegged to the value of other assets, such as the dollar or government securities. However, the market has already witnessed the collapse of a stablecoin, resulting in severe losses for many investors. While the legislation rightly prohibits members of Congress and their families from profiting off stablecoins, it does not impose similar restrictions on the president.
The Risks of Mainstream Crypto Integration
The most concerning aspect of the GENIUS Act is its potential to integrate cryptocurrencies into mainstream financial systems. This could lead to significant risks for the economy. The bill paves the way for greater institutional investment in cryptocurrencies, allowing banks and major corporations such as Walmart, Amazon, or Facebook to create and issue their own digital currencies—potentially introducing thousands of new coins into the market, all with minimal regulatory scrutiny.
Additionally, Trump has facilitated measures that allow retirement plan managers to invest 401(k) funds in cryptocurrencies, placing personal savings at risk, regardless of individual interest in crypto investments. Historical precedents, such as the 2008 financial crisis, illustrate that the intertwining of the economy with speculative assets like cryptocurrencies heightens systemic risks. A significant downturn in a single cryptocurrency could trigger a mass sell-off, leading to bank runs.
Treasury Secretary Scott Bessent has warned that under the GENIUS Act, crypto firms could potentially hold over $2 trillion in U.S. treasury bills as collateral. Should these firms need to liquidate their assets to manage a bank run, it could result in a drastic depreciation of U.S. securities, potentially igniting a global financial crisis.
Despite its dubious social value and significant risks to the economy, the cryptocurrency sector is being enabled to infiltrate the financial landscape, largely due to Trump’s substantial financial gains from crypto investments. To raise awareness of these issues, sharing this information can help inform others about the potential pitfalls of this burgeoning financial frontier.
