Senate Democrat Launches Probe Into President Trump’s Crypto Ventures Over Ethics, Foreign Influence Concerns

Democratic Senator Richard Blumenthal has opened a formal investigation into President Donald Trump’s cryptocurrency activities, including the launch of his Solana-based $TRUMP meme coin and his ties to the DeFi platform World Liberty Financial (WLFI).

Senator Richard Blumenthal called Trump's memecoin launch and other crypto ventures "an unprecedented, pay-to-play Scheme to provide access to presidency to the highest bidder."

The investigation centers on whether these ventures violate federal law, government ethics rules, or the Constitution’s ban on foreign gifts and payments.

Pay-to Play allegations

Blumenthal said Trump's crypto ventures invite and allow anyone in the world, including foreign governments and unscrupulous individuals to directly enrich the president, while hiding potential payoffs in the pseudonymity of the blockchain.

Trump launched the Solana-based memecoin called Official Trump just days before his inauguration. The memecoin quickly gained traction before crashing. It's now down 85% from its peak price.

Democrats have also accused Trump of profiting from these virtual coin launches, but Trump has denied all the allegations and avoided questions on this matter.

The president also has close association with the an Ethereum-based decentralised Finance project, World Liberty Financial. The project, led by the president's two sons, Eric and Donald.Jr, was first announced by Trump through social media ahead of his election win.

In letters sent to Fight Fight Fight LLC (the company behind $TRUMP) and WLFI, Blumenthal demanded records on ownership, financial structure, and steps taken to prevent conflicts of interest.

Blumenthal specifically criticized the White House’s promotion of a private dinner and VIP tour for top $TRUMP token holders, events that have driven up the token’s value.

The announcements has drawn ire from Democratic lawmakers, who claim that promoting the memecoin is corrupt as it financially benefited the President.

The inquiry also raises national security concerns, citing WLFI’s recent deal with Emirati state-owned investment firm MGX and the possibility of future foreign government investments.

Blumenthal warned these arrangements could violate the Constitution’s foreign emoluments clause and questioned whether Trump’s administration is using federal power to benefit crypto firms tied to his family and allies.

Blumenthal further noted that the top $TRUMP holder is Justin Sun, a crypto entrepreneur facing SEC civil fraud charges, suggesting that the token’s structure may facilitate financial dealings with individuals under federal investigation.

Calls for Transparency and Accountability

The Subcommittee has requested extensive documentation from both Fight Fight Fight LLC and WLFI, including communications with the Trump Organization, the Executive Office of the President, and foreign governments.

Blumenthal’s investigation comes amid broader Democratic pushback against Trump’s growing crypto empire, with lawmakers warning that these ventures blur the lines between public office and private profit.