Amid ongoing scrutiny, Donald Trump and his family are immersed in crypto dealings, particularly following MGX’s $2 billion investment into Binance via their stablecoin, USD1. This deal raises ethical questions; World Liberty Financial’s ties to the Trump family and Binance’s past legal issues amplify concerns. Lawmakers, including Senators Warren and Murphy, are calling out perceived corruption linked to these investments as Trump’s regulatory changes potentially benefit his family financially.
Donald Trump and his family’s involvement in the cryptocurrency sphere continues to raise eyebrows, especially following a significant investment from Abu Dhabi’s state-backed MGX investment firm. This investment, which amounts to a staggering $2 billion, has been funnelled through World Liberty Financial’s stablecoin USD1, a project that prominently features the Trump family and is co-managed by Eric Trump and Zach Witkoff during a crypto conference in the UAE.
This deal follows recent claims made by Binance’s founder, Changpeng Zhao, who stated that he had no discussions regarding a deal with Binance US. However, the implications of this transaction are laden with ethical questions. Notably, World Liberty Financial has connections to Trump’s administration, including ties to Steve Witkoff, a figure who has been labelled as a shadow secretary of State, adding another layer of complexity to the situation.
World Liberty Financial, it should be noted, comes with a less than stellar track record. Binance, the recipient of the Emirati investment, has faced allegations of financial misconduct including money laundering and sanctions violations, and was found guilty in November 2023 among other offences. The foreign political interests involved only magnify concerns over the nature of this investment and its potential influence on U.S. policy.
Despite Trump not officially holding a stake in the company, his role in his family’s crypto enterprises is quite evident. Preceding his inauguration, he launched $TRUMP, a meme coin that experienced a meteoric rise before crashing. Recently, he announced an exclusive dinner at Mar-a-Lago for major investors in this coin, which seems to spark renewed interest and speculation among potential buyers.
According to an analysis from the Washington Post, the dinner’s announcement briefly boosted the price of the $TRUMP coin unexpectedly. The largest investor poured in $24 million. There appears to be an emerging pattern of foreign nations and individual investors showing keen interest in World Liberty Financial, likely viewing it as a means to curry favour with the Trumps.
Further investigation by The New York Times indicated that the company has grossed over $550 million with its token sales, while their pitches often highlight their proximity to Trump. Mike Silagadze, CEO of Ether.Fi, recounted that they were repeatedly informed of their close ties to Trump during discussions, while other potential partners described the pitches as misleading.
Those who accepted the proposition did so amidst concerns over the integrity of the industry. Andre Cronje from SonicLabs remarked on the unsettling nature of deals involving political branding, calling it a “black spot” on crypto’s image. Lawmakers are taking heed of these developments, particularly as Trump pursues deregulation within the crypto industry, which could directly benefit him and his family’s ventures.
In a statement regarding World Liberty Financial’s connection to the Binance deal, Senator Elizabeth Warren expressed serious concerns, labelling it as “corruption.” She pointed out that such transactions were a method for the Trump family to enrich themselves through a dubious foreign fund using stablecoins.
Adding to the chorus of criticism, Senator Chris Murphy described Trump’s entanglement with these crypto projects as potentially the most significant corruption crisis in U.S. presidential history. Murphy further asserted that it is vital to prevent presidents from outmanoeuvring legislation allowing them to profit using their platforms, likening this to a bribery scheme rather than legitimate business practices.
