A growing political storm is brewing around former President Donald Trump’s cryptocurrency-related ventures, with Democratic lawmakers intensifying their scrutiny. On May 14, a trio of House Democrats—Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin—sent a formal request to the U.S. Treasury Department, seeking access to any Suspicious Activity Reports (SARs) that may shed light on potential financial misconduct tied to Trump-affiliated crypto initiatives.
The letter, addressed to Treasury Secretary Scott Bessent, calls for all SARs filed since 2023 that reference World Liberty Financial (WLF), the Official Trump token (TRUMP), and other individuals and entities possibly linked to Trump’s political and financial ecosystem. The request also mentions a diverse array of names and organizations, including MELANIA, Justin Sun, Elon Musk, America PAC, WinRed, and the term “political action committee.”
SARs are red flags filed by U.S. financial institutions when they detect potentially illegal financial activity—such as money laundering, fraud, or other irregularities. The lawmakers’ demand signals heightened concern over the intersection of Trump’s political comeback and his expanding footprint in the crypto world.
The Democrats argue that Trump’s crypto ventures, including the Trump-branded token and entities like WLF, could be exploited as tools for corruption, foreign influence, or evasion of campaign finance laws. In particular, they raise alarms about WLF’s overseas token sales, which were reportedly offered to foreign investors. The lawmakers argue that these investors often face more relaxed regulatory standards than U.S. citizens, making the platform vulnerable to manipulation and hidden agendas.
Adding another layer of complexity is Justin Sun, the controversial founder of the Tron blockchain and a known investor in WLF. Sun has faced his own legal troubles, including an ongoing but currently paused SEC lawsuit alleging securities violations. His connection to Trump-linked ventures has only deepened Democratic lawmakers’ concerns.
The lawmakers’ letter doesn’t stop at just the Trump token. They also want information on other major Republican fundraising efforts, including SARs related to WinRed—an influential GOP digital donation platform—and a super PAC connected to Elon Musk, which reportedly funneled $250 million into Trump’s campaign.
One of the primary concerns voiced by Connolly, Morelle, and Raskin is the lack of transparency around the Trump token. Because the identities of purchasers are not disclosed publicly, critics argue it could offer a backdoor for wealthy or foreign actors to discreetly curry favor with the former president, potentially influencing political decisions or gaining access.
This isn’t the first time Democrats have raised the alarm over Trump’s crypto ties. Just days earlier, on May 9, Bloomberg reported that Democratic senators urged the Department of Justice and Treasury to investigate Trump’s rumored connections to Binance, one of the world’s largest crypto exchanges. They expressed unease over what they say could be conflicts of interest in future regulatory decisions if Trump were to regain power.
On May 6, House Democrats took their efforts a step further by introducing two new bills and launching a subcommittee inquiry aimed squarely at curbing Trump’s potential profits from crypto ventures, which they fear could blur the lines between public service and private enrichment.
As the 2024 election cycle heats up and crypto becomes a more prominent campaign issue, Trump’s ventures in the digital asset space are likely to remain under the microscope. This latest push by Democrats to obtain SARs could uncover a deeper web of financial activity and raise new questions about the role of digital currencies in political influence—and accountability.
