Foreign investments surge into the Trump family's cryptocurrency holdings, causing a significant gain in their wealth.
"He's Afoot in the Crypto Kingdom!"
President Donald Trump's bankroll is swelling likes a Bitcoin pump thanks to his dabbling in digital coins, a new report by the State Democracy Defenders Action asserts.
The nonprofit, which claims to be fighting autocracy, estimates that close to 40% of Trump's net worth now stems from digital assets, amassing around $2.9 billion. This astronomical windfall has stemmed from Trump's personal memecoins - Official Trump and Melania Meme - and a substantial stake in World Liberty Financial (WLFI), a Trump-affiliated cryptocurrency exchange unveiled in 2024.
The Trump-Coin Rollercoaster: While the group behind the study describes itself as nonpartisan, it's led by longtime critics of the president. However, the numbers are staggering. Trump's crypto holdings could grow more robust in the near future. World Liberty Financial announced this week that MGX, a firm backed by Abu Dhabi, intends to pump $2 billion into the Trump-linked exchange by investing in its new stablecoin, USD1.
At Token2049 on May 1, World Liberty Financial co-founder Zach Witkoff confirmed that USD1 has been chosen as the official stablecoin for MGX's investment into Binance.
Keeping It In the Family
World Liberty's website reveals the cozy relationship between the Trumps and the operation: a family-affiliated entity holds a 60% stake and owns 22.5 billion $WLF tokens. But it's not just a family affair. Trump's White House crypto czar, David Sacks, stands to make a killing from the USD1 stablecoin's custodial deal with BitGo, a company Sacks still owns a stake in.
Sacks, according to the State Democracy Defenders Action, was allowed to keep his BitGo ownership due to a March 5 conflict-of-interest waiver from the White House Counsel. Aside from Sacks, Trump's Middle East envoy, Steven Witkoff, is also listed as a co-founder of WLFI, alongside the president's two sons, although the financial details remain unclear.
Enter the Entrepreneur: Justin Sun
Justin Sun, one of the top crypto heavyweights, dropped $30 million on WLFI just weeks following Trump's victory in the 2024 presidential election. This investment allowed a Trump-linked holding company to receive 75% of the net protocol revenues, and while it's uncertain how much of the MGX deal will benefit Trump, "a lot" seems like a safe bet.
As the Trump crypto empire balloons, so does the concern over conflicts of interest. His administration has slowly lessened the oversight of the digital asset industry, prompting questions about crypto cronyism running rampant.
So far, the Trump administration's U.S. Securities and Exchange Commission has dismissed numerous lawsuits and investigations against crypto and blockchain companies, including Dragonchain, Coinbase, Gemini, Uniswap, and Ripple.
It's Deja Vu All Over Again: While Trump claims his crypto strategy is about pushing for decentralization, the evidence suggests that it's more about consolidation - of wealth, influence, and dinner invitations to Mar-a-Lago.
Here's the Lowdown: The report implies that rather than divesting from his crypto assets, Trump has maneuvered himself to profit from them by adopting a lax regulatory stance compared to his predecessors. This raises concerns that reduced oversight could undermine U.S. national security interests by emboldening the use of crypto by terrorists and extremists for anonymous financing and allowing foreign governments to exploit Trump's crypto businesses for corrupt practices.
- The reserves of President Donald Trump in the digital coin realm are expanding faster than a Bitcoin surge, as claimed by the State Democracy Defenders Action in a recent report.
- Almost 40% of Trump's net worth now originates from digital assets, contributing approximately $2.9 billion to his swelling bankroll.
- Trump's crypto holdings might witness further growth due to World Liberty Financial's upcoming $2 billion infusion from MGX, a firm backed by Abu Dhabi.
- At Token2049 on May 1, Zach Witkoff, co-founder of World Liberty Financial, confirmed that USD1 would be the official stablecoin for MGX's investment into Binance.
- The family-affiliated entity related to the Trumps holds a 60% stake and owns 22.5 billion $WLF tokens in World Liberty Financial's operations.
- David Sacks, Trump's White House crypto czar, stands to gain significantly from the USD1 stablecoin's custodial deal with BitGo, a company he still retains a stake in after a March 5 conflict-of-interest waiver from the White House Counsel.
- Trump's Middle East envoy, Steven Witkoff, and his two sons are listed as co-founders of WLFI, although financial details related to their involvement remain unspecified.
- Justin Sun, a top crypto pioneer, invested $30 million in WLFI soon after Trump's victory in the 2024 presidential election, securing a Trump-linked holding company 75% of the net protocol revenues.
- Concerns over conflicts of interest have emerged as the Trump administration has been reducing its oversight of the digital asset industry.
- The report suggests that instead of distancing himself from his crypto assets, Trump has instead manipulated the regulatory landscape to turn a profit, raising apprehensions about national security interests being compromised due to reduced oversight.
Additionally, the report hints that such relaxed regulations could embolden terrorist financing, anonymous financing for extremists, and allow foreign governments to engage in corrupt practices using Trump's crypto businesses.
