On Monday, the 220 winners of a recent cryptocurrency contest received an announcement to expect an email with “the most exclusive invitation in the world.” Their reward for significant financial investments—some reaching into the millions—was an invitation to a private gala hosted by Donald Trump at his Washington, D.C. golf club later this month. This event illustrates Trump’s ongoing conflicts of interest throughout his political career, which have included real estate holdings, media ventures, and various transactional dealings, notably a $400 million plane gifted by Qatar. Such situations have raised concerns among ethics watchdogs for many years.
Trump’s entry into the cryptocurrency arena represents a new layer of these conflicts. By using his presidential position to benefit personally, he risks foreign manipulation while navigating an industry that is often criticized for its lack of oversight and prevalence of scams. This venture could potentially become one of the most profitable endeavors he has ever undertaken.
Auctioning Off Influence
Trump’s evolution from a critic of cryptocurrency to a key player in the industry last year alarmed ethics advocates, who worried that if he were to regain office, he might pursue legislation favoring his financial interests in crypto. The method of granting direct presidential access through a cryptocurrency initiative heightened anxieties about corruption and influence peddling, especially since the details of the contest remain murky, with winners’ identities kept secret.
The contest rules specified that the top 220 purchasers of the $TRUMP coin, displayed on a public leaderboard, would receive invitations to dine with the former president. The highest-ranked 20 would enjoy even more exclusive access at a VIP reception. The leaderboard only displayed usernames and wallet addresses, obscuring the true identities of the participants. Additionally, winners could write any name on their invitation, further complicating the guest list.
One major concern from Democratic lawmakers and ethics organizations is that this contest may allow foreign entities to gain influence over Trump by investing in his cryptocurrency. Analysis of the $TRUMP leaderboard revealed that many top investors used international exchanges that restrict U.S. users, suggesting that some winners may not even be American residents. The top holder of $TRUMP, who possesses over $18 million of the coin, has ties to Justin Sun, a crypto entrepreneur from Hong Kong. Sun faced securities fraud charges from the SEC in 2023, although the investigation was suspended following Trump’s election.
Sun also invested heavily in other crypto initiatives linked to the Trump family and serves as an advisor to World Liberty Financial, a company controlled by Trump’s sons. Moreover, foreign investors are showing interest in the $TRUMP coin beyond the contest. GD Culture Group, a small tech firm with a Chinese subsidiary, recently announced a $300 million investment to acquire $TRUMP coins, coinciding with Trump’s decisions regarding TikTok’s potential ban in the U.S.
The Trump Family’s Shift from Real Estate to Cryptocurrency
The Trump family’s venture into cryptocurrency is a relatively new phenomenon. Since early last year, they have actively engaged with the crypto market, initially attracting investors during Trump’s presidential campaign. He became the first candidate to accept cryptocurrency donations and aimed to position the U.S. as the “crypto capital of the planet” during a Bitcoin conference in July. Later, Trump introduced World Liberty Financial, a crypto venture that has amassed approximately $550 million under the Trump family’s control.
After winning the election, Trump’s involvement in cryptocurrency deepened, particularly with the creation of memecoins, which are often subject to speculative trading fluctuations. The $TRUMP coin and the $MELANIA coin were launched just days before his inauguration, with the $TRUMP coin initially peaking at around $75 before experiencing a decline, followed by a resurgence in value as the dinner contest was announced.
Since that announcement, Trump’s related crypto firms have expanded to include another cryptocurrency called USD1, a vague “Trump reward points” program, and an Exchange-Traded Fund (ETF). Recently, Eric Trump revealed that a Bitcoin mining company controlled by the family is set to go public. The complexity of Trump’s involvement in these ventures raises questions, as he does not directly own the company behind the $TRUMP memecoin. Instead, the Trump Organization oversees a firm called CIC Digital LLC, which, along with another entity called Fight Fight Fight LLC, manages and profits from the coin’s trading, holding about 80% of its reserves, valued at over $2 billion at current market rates.
The emergence of the Trump family’s crypto enterprise marks a significant shift from Trump’s prior characterization of Bitcoin as a “scam” in 2021, when he also called for stringent regulations. The crypto landscape has evolved dramatically since then, but Trump’s newfound interest suggests he stands to gain financially from these developments.
Backlash Against Trump’s Deregulation of Crypto
While the Trump family expands its cryptocurrency interests, the administration has also been advocating for deregulation within the industry, appointing a pro-crypto SEC chair. In April, the Department of Justice disbanded its cryptocurrency fraud investigations unit, aligning with an executive order promoting crypto-friendly policies from Trump.
These deregulation efforts occur amidst ongoing issues of fraud in the crypto sector, particularly following the collapse of the FTX exchange, which became one of the largest scandals in recent financial history. The potential relaxation of regulations poses risks that extend beyond corruption, impacting energy consumption and environmental concerns associated with the proliferation of Bitcoin mining operations across the U.S., issues that Trump can influence.
Some Democratic lawmakers and even certain Republicans have expressed concerns regarding Trump’s conflicts of interest, with some allies suggesting that the dinner contest may have crossed an ethical line. Connecticut Senator Richard Blumenthal has initiated an ethics investigation into Trump’s cryptocurrency operations, stating, “President Trump’s financial entanglements with the $TRUMP coin, alongside the use of the White House to host competitions to boost its value, represent an unprecedented pay-to-play scheme granting presidency access to the highest bidder.”
Trump’s cryptocurrency initiatives have also hindered the progress of the Genius Act, a bipartisan bill aimed at regulating certain aspects of cryptocurrency. Senate Democrats and a trio of Republicans voted against a procedural motion that would have allowed the bill to advance, arguing it required stronger measures to avoid the conflicts of interest that Trump has created. Massachusetts Senator Elizabeth Warren voiced her concerns in a recent speech, stating, “It is astonishing to witness Donald Trump rapidly leverage his presidential position to generate billions for himself and his family. The largest corruption scandal in modern history is unfolding right now, and it seems to be going unnoticed.”
