Trump cryptocurrency companies face investigations on fraud, bribery and conflicts of interest

Top Democrats have investigated President Donald Trump’s cryptocurrency, citing concerns about potential illegal fundraising, foreign influence and abuse of political power.

In line with this, they requested reports of all suspicious activities (SARS) related to Trump’s fundraising efforts.

Accusation

Senior members of the three House committees in a letter to Treasury Secretary Scott Bessent, Democrats Gerald Connolly, Joseph Morelle and Jamie Raskin said:

“We write about potential abuse of certain politically oriented fundraising activities for fraud, corruption or other illegal purposes.”

The investigation targets Republican fundraising platforms that won multiple political action committees, including Elon Musk’s U.S. PAC, Trump’s family’s World Free Finance (WLF) and meme coins related to the president and the first lady.

Legislators are particularly interested in the world’s free sale of WLFI tokens. WLF received $75 million in purchases from Justin Sun after failing to meet its initial fundraising target. The founder of TRON has been under scrutiny from the SEC since 2023, but has recently stopped the suspension in the case as discussions with regulators continue, raising suspicion of bribery.

House Democrats also mentioned Trump and Melania meme coins. According to them, 80% of the entities associated with the president-controlled entities already provide and receives over $100 million in transaction fees.

Foreigners (some allegedly Chinese nationals) are also said to have made substantial profits to sell meme symbols, while later investors lost more than $2 billion. These patterns have sparked allegations of possible insider trading and pumping activities.

The letter also addressed concerns about national security and foreign impacts, as coin buyers remain anonymous and that most WLF tokens are sold to foreign investors. Connolly and the company believe this provides non-locals with room to impact U.S. policy.

In March 2025, WLF announced plans to launch a Stablecoin called USD1. Later, the Abu Dhabi-backed fund revealed that it would use Stablecoin to invest $2 billion in Binance Crypto Exchange, a transaction that was previously convicted of violating the U.S. anti-fine law.

The letter stressed that the timing and nature of the deal demonstrated the dangers of Trump’s conflict of interest and the ethics of a mix of business and presidential powers.

Trump faces ongoing scrutiny

The three legislators demanded that all relevant SARS be provided to their committees by May 30. Their demands are increasing on the pressure of Democrats seeking to regulate political participation in cryptocurrencies.

Last week, Rep. Ritchie Torres introduced a bill to ban the incumbent president and members of Congress from making profits, thus taking away Meme Coins and Stablecoins. In April, Senators Elizabeth Warren and Adam Schiff also called for a moral investigation after a dinner hosted by Trump promised exclusive invitations to top holders of his Solana meme coins.

In addition, Congress voted on the Genius Act, which aims to regulate stable bills, citing unresolved conflicts related to Trump’s crypto deals.