The Trump family's deepening involvement in the cryptocurrency sector has ignited a firestorm of ethical and legal questions as their various digital asset ventures reportedly approach US$1 billion in value, according to a comprehensive Bloomberg analysis of financial disclosures and blockchain records.
This extraordinary financial windfall, accumulated since President Donald Trump's 2024 election campaign, has drawn intense scrutiny from government ethics experts and political opponents who see potential conflicts with the administration's pro-crypto policy agenda.
Bloomberg reported that in September of last year, the Trump family announced the launch of their cryptocurrency initiative "World Liberty Financial" (WLF). Since its establishment, the project has been actively acquiring cryptocurrencies, including Ethereum and Tron. A Trump-family-controlled company holds 60% equity in WLF, with documents indicating Trump-affiliated companies are entitled to 75% of net revenues. Following the completion of its second round of token sales last month, WLF has raised US$550 million (approximately HK$4.26 billion) through token offerings.
Notably, one of WLF's co-founders is Zach Witkoff, son of Steve Witkoff, who served as Trump's Middle East envoy. Zach facilitated connections between the Trump family and other participants in the venture, raising concerns among critics about potential conflicts of interest. The involvement of a family member of a former administration official in this cryptocurrency project closely tied to the President's family has intensified scrutiny over possible ethical violations and improper influence peddling.
This rapid expansion marks a stunning reversal for President Trump, who as recently as 2022 advocated for strict cryptocurrency regulations, famously calling Bitcoin "a disaster waiting to happen." His dramatic shift coincided with the 2024 campaign season, when he began courting crypto miners and blockchain entrepreneurs at rallies. Within months of taking office, Trump signed executive orders establishing a strategic Bitcoin reserve and creating a digital asset task force within the National Economic Council - policy moves that sent cryptocurrency values soaring and directly benefited the family's holdings.
The ethical implications have drawn sharp criticism from across the political spectrum. Norman Eisen, who served as special counsel and special assistant to the president for ethics and ambassador to the Czech Republic under President Barack Obama, told reporters, We've never seen a situation where a sitting president's family stands to gain so directly from his policy decisions in such an opaque financial arena. Anthony Scaramucci, Trump's briefly tenured communications director, echoed these concerns, noting that cryptocurrency's pseudonymous nature could allow foreign entities to secretly influence U.S. policy by investing in Trump-linked projects.
Market analysts point to several eyebrow-raising transactions, including the Trump family's personal "MAGA" meme coin that generated US$11.4 million before collapsing in value, and their newly announced bitcoin mining venture targeting the very industry groups that donated heavily to Trump's campaign. Perhaps most controversially, WLF recently launched USD1, a dollar-pegged stablecoin that some experts warn could blur lines between private enterprise and monetary policy.
The White House has repeatedly stated that President Trump's cryptocurrency holdings are held in a blind trust, though ethics experts contest this characterization given his son's management role. As Congress prepares to hold hearings on digital asset regulation next month, Democratic leaders have vowed to subpoena records related to the Trump family's crypto dealings. Meanwhile, the SEC is reportedly examining whether WLF's token sales complied with securities laws.
In an industry already grappling with credibility issues, the Trump family's high-profile involvement has become a lightning rod for debate. With the Trump Organization planning additional crypto ventures and the administration preparing new digital economy initiatives, these ethical questions seem certain to intensify in the coming months.
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