Trump family’s crypto deals spark White House turmoil, critics warn of a ‘Hunter Biden-style’ scandal brewing in plain sight

Donald Trump is facing criticism over crypto projects tied to his family, including the $TRUMP meme coin and World Liberty Financial, which could cause a “Hunter Biden-style” scandal. Critics claim foreign money flowing into these projects is a way to gain influence over the White House.

Former Republican senator Charlie Dent drew parallels of Trump's family linked crypto businesses getting interest from foreign investors, to former prez Joe Biden's son, Hunter Biden's case. Hunter was under scrutiny for leveraging his POTUS father's standing while working with Ukrainian Gas giant Burisma.

A Chinese e-commerce company, GD Culture Group, which has no significant revenue or staff, plans to buy up to $300 million of $TRUMP coins. This happens as Trump considers letting TikTok stay in the US, despite its ban by Congress.

Some people say foreign investors are giving money to Trump’s family’s crypto projects to get on his good side, which could hurt Trump’s plans to make crypto more accepted. Dent suggests that Trump needs to set boundaries for his family's business dealings to avoid controversies.

Donald Trump Jr. defended the family’s crypto deals, saying he has always been a businessman, unlike Hunter Biden. He dismissed any comparison, emphasizing that his business work had nothing to do with influencing government policy.

China linked billionaire Justin Sun, already with a $45 million dollar investment in Trump backed World Liberty Financial, upped his stake to $75 million, pumping the extra $30 million after Trump took office. His China association has sparked a slew of security concerns among experts.

Experts like Mark Hays from Americans for Financial Reform warn that Trump’s personal involvement in crypto could encourage "pay-to-play" politics. This also raises the risk of money moving through opaque channels, without accountability.

Around 80 percent of the profits generated from the trading of $TRUMP are controlled by the Trump family. An Abu Dhabi based investment firm also pumped in $2 billion using USD1 in Binance, another stable coin of the World Liberty Financial.

Though the Trump organisation claims the POTUS relinquished control of the conglomerate after getting in the White house, by handing it over to his children, the organisation continues to benefit from Trump's policies.

The POTUS also plans on hosting an exclusive dinner for top 19 holders of $TRUMP on international exchanges. This raised concerns that foreign entities are involved in his crypto deals.

Trump gained support from the crypto and tech industries due to promises to ease regulations. However, concerns are growing that his personal investments could undermine efforts to regulate the crypto sector fairly.

Mike Chan, a crypto investor, called the Trump family’s involvement a “big conflict of interest,” warning it undermines the legitimacy of crypto industry regulations. Of Trump's total net worth, a whopping $2.9 billion, nearly 40 percent is held in crypto, reports said.

A bill laying bare a set of federal rules to regulate stable coin, the GENIUS ACT, was blocked by some Democrats in the Senate, purely because they were aware of the President's conflict of interest when it came to crypto dealings, reports said.

Republican Senator Cynthia Lummis, a vocal Crypto supporter that though Trump is just keeping his promise to be 'pro- digital' prez, his ventures in stable coins did make for 'challenging' optics.

Trump’s family’s involvement in crypto is sparking ethical concerns and potential conflicts of interest, as foreign investors pour money into projects linked to him. This risks tarnishing both his reputation and the crypto industry’s legitimacy.

FAQs

Q1. Why are people talking about Trump and crypto?
Because his family is making money from crypto, and some people think it could be a problem.

Q2. What is the $TRUMP coin?
It is a crypto coin that has Trump’s name on it and is linked to his family.