A group of US Democrat lawmakers, including representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin, have recently intensified their scrutiny of former President Donald Trump's digital ventures by demanding access to suspicious activity reports (SARs) related to several Trump-backed cryptocurrency projects. The lawmakers penned a letter to Treasury Secretary Scott Bessent on May 14, requesting all SARs filed since 2023 concerning World Liberty Financial (WLF) and the Official Trump (TRUMP) token.
Financial institutions in the US are required to file SARs with the Financial Crimes Enforcement Network (FinCEN) when they detect suspicious activities such as potential money laundering or fraud. The lawmakers' letter also seeks SARs mentioning entities like WinRed, America PAC, Elon Musk, political action committees (PACs), and individuals like Trump, Melania Trump, and Justin Sun by May 30.
The Democrats assert that their investigation aims to assess whether legislative action is necessary to prevent violations of campaign finance, consumer protection, bribery, securities fraud, and other anti-corruption laws. They also highlight concerns that WLF and Trump's token could be misused, potentially serving as a vehicle for foreign influence peddling, especially as WLF reportedly allocated part of its token sale to foreign investors subject to less stringent regulations.
Of particular concern is Justin Sun's involvement in WLF and the suspension of a Securities and Exchange Commission (SEC) lawsuit alleging Sun violated securities laws. The lawmakers also criticize the lack of public disclosure of the identities of Trump coin purchasers, raising fears that bad actors could use the coin to gain favor with the former president.
Additionally, the lawmakers are seeking SARs related to Republican digital fundraising platform WinRed, Elon Musk's super PAC, which contributed $250 million to Trump's election campaign, and other PACs. This latest move is part of a broader effort by Democratic lawmakers to scrutinize Trump's cryptocurrency ventures. Recent reports indicate that Democratic senators have expressed concerns about Trump's ties to cryptocurrency exchange Binance and potential conflicts of interest in regulating the industry.
Moreover, on May 6, Democratic lawmakers launched a series of initiatives targeting Trump's potential profit from his crypto endeavors, including introducing two bills and initiating a subcommittee inquiry. The ongoing scrutiny underscores the growing focus on the intersection of politics, cryptocurrency, and potential conflicts of interest in the US.
In conclusion, the letter sent by Democrat lawmakers signals a deepening investigation into Trump's cryptocurrency projects, reflecting broader concerns about financial misconduct, foreign
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