US Congress scrutinises the ethics of Donald Trump’s crypto ventures

US Representative Gerald Connolly called for an investigation into a potential conflict of interest linked to Donald Trump’s cryptocurrency projects.

In a letter to the chair of the House Oversight and Government Reform Committee, the congressman noted that the sitting president may be profiting from the World Liberty Financial (WLFI) platform and the TRUMP memecoin. In his view, this potentially violates ethical norms and creates national-security risks.

On WLFI, Connolly emphasised that the fund’s largest investor is Tron founder Justin Sun. The Chinese entrepreneur is under investigation by the SEC on charges of securities fraud. Possible foreign influence is also a concern, he added.

He said Sun’s purchase of 30 million WLFI tokens allowed the company to surpass an own-revenue threshold, opening the possibility of sending money directly to Trump and his family.

“It is alarming that this is not the only cryptocurrency enterprise the president is engaged in,” Connolly wrote.

Three days before the inauguration, Trump launched the TRUMP memecoin. An entity within the Trump Organization, which sells a range of products under the politician’s brand, holds 80% of the tokens, the congressman said.

“Ethics experts have already expressed serious concern that Trump ‘is literally cashing in on the presidency by creating financial instruments so that people can transfer money to his family because of the office he holds’,” Connolly stressed.

On January 19 the price of TRUMP hit a peak of $73.43, but after the politician took office it slumped. At the time of writing, the token trades at $36, down 51% from the ATH.

Whales did well on the token

ARK Invest founder and CEO Cathie Wood told Bloomberg she sees “little utility” in the token beyond it being “President Trump’s own memecoin”.

.@ARKInvest CEO and CIO Cathie Wood says we don’t know if President Trump’s memecoin holds much utility, but Trump is “ushering in the next phase of the crypto revolution.” She speaks with @scarletfu, @kgreifeld and @EricBalchunas on “ETF IQ” https://t.co/YbD2ANk8TA pic.twitter.com/pxlEjL3ZUA

— Bloomberg TV (@BloombergTV) January 22, 2025

“I think in these early days [in office] he is opening the next phase of the crypto revolution,” she added.

Her firm is not interested in such assets and holds only Bitcoin, Ethereum and Solana, Wood said.

PANews analysts examined the activity of the 1,000 largest investors. By their estimate, the average TRUMP purchase was $591,000.

The Wealth Truth Behind the TRUMP Token

Author | Frank, PANews

This article examines the top 1,000 holders. Whales had an average buy — in of $591,000, with nearly 40% buying in below $15. The most powerful address invested $1.09 million within a minute. Success with TRUMP… pic.twitter.com/FAzTbIWkXv

— Wu Blockchain (@WuBlockchain) January 22, 2025

Most of the largest holders bought the token below $15. The sales peak came on January 19 in the $65–70 range.

The researchers highlighted one address that, a minute after TRUMP launched, put $1.09 million into the token at $0.18. According to incomplete statistics, the wallet’s sales volume exceeded $20 million, although at the peak the value of its tokens reached $477 million.

Earlier this address traded GRIFT, CHILLGUY and MOODENG, prompting speculation it belongs to an insider at the Solana-based DEX-liquidity aggregator Jupiter.

“The reason TRUMP triggered FOMO in the market is that, on the one hand, the token’s astronomical market capitalisation of $82 billion sparked an exaggerated engagement effect. On the other hand, some whales that made early purchases publicly disclosed their orders, which stoked the frenzy,” the experts concluded.

According to a Dune dashboard, most TRUMP holders ended up at breakeven or with losses of up to $1,000.