Trump Welcomes Crypto Tycoons: Industry Leaders Alarmed Over Potential Conflict of Interest
WASHINGTON (AP) – On Thursday evening, President Donald Trump hosted a luxurious dinner for prominent backers of one of his cryptocurrency initiatives. This gathering highlighted the growth of this new economic sector as well as the president’s readiness to intertwine official duties with private gain.
About 220 of the largest investors in the $TRUMP fund are involved.
meme coin
were invited to Trump’s upscale golf club in Northern Virginia, where they enjoyed filet mignon and halibut. Based on participant postings on social media, Trump gave a speech lasting around 30 minutes before joining in the dance to the tune of ” YMCA.”
Even though the White House claimed that Trump would participate in the event during “his personal time,” he was positioned behind a lectern adorned with the presidential seal while promoting an industry that is profiting his family’s enterprise.
Following feelings of being unjustly targeted during President Joe Biden’s administration, the cryptocurrency sector rapidly emerged as a significant political power. It has made substantial donations to support Donald Trump and other allied legislators. In response, the U.S. Senate is
advancing
key pro-crypto legislation while
bitcoin prices soar
.
Nevertheless, certain cryptocurrency supporters who back Trump are concerned that his direct intervention might be damaging their attempts to build trustworthiness and steadiness within the sector.
It’s distasteful and an unwarranted diversion,” stated Nic Carter, a supporter of Trump and a partner at the cryptocurrency investment company Castle Island Ventures. He mentioned that the president is “suffocating us” with his personal crypto ventures. “What we prefer is for him to enact sensible laws and nothing more.
As the president leverages cryptocurrencies to generate revenue for his brand through novel methods, it simultaneously offers a chance for opaque purchasers to exploit the online anonymity provided by these platforms to gain access to him. At the dinner event, this opaqueness became apparent when attendees filled out placards listing prominent investors they deemed superior; some identified themselves with genuine identities, whereas others opted for aliases.
No press was permitted entry to the dinner, and the president stayed at his golf club for roughly one hour. Outside the club, protesters assembled carrying placards with messages like “end cryptocurrency corruption” and “keep crooked individuals out.”
Trump said the event was “good, very good” as he returned to the White House.
worries regarding Trump’s forays into cryptocurrency existed before his Inauguration Day.
Three days prior to Trump assuming office on January 20, he unveiled the launch of the $TRUMP meme coin at the extravagant Crypto Ball, which was just a short distance away from the White House. He portrayed it as a means for his followers to “enjoy themselves.”
Memecoins are considered the outcasts of the cryptocurrency industry. Typically born as jokes, they lack practical use and are susceptible to massive volatility, which usually benefits a select few insiders while potentially harming less experienced investors.
The president’s meme coin stands out due to its distinct purpose: providing access to Trump himself. Besides attending Thursday’s dinner, the top 25 participants were also granted entry into an exclusive gathering with the president. Moreover, the highest-ranking four individuals received luxury $100,000 cryptocurrency-inspired and Trump-endorsed timepieces as rewards.
Trump’s meme coin saw an initial spike in value, followed by a steep drop. Its creators, which include an entity controlled by the
Trump Organization
, have earned hundreds of millions of dollars through fee collection on trades.
First lady
Melania Trump
She has her own meme coin, and Donald Trump’s sons, Eric and Don Jr., who are managing the Trump Organization during their father’s presidency, declared they will partner with an established company to launch a new cryptocurrency mining venture.
The Trump family likewise owns approximately a 60% share in
World Liberty Financial
, a crypto initiative offering another pathway for investors to contribute funds, thereby benefiting the president’s family members. Recently, World Liberty introduced its own stablecoin called USD1. This endeavor gained momentum following an announcement that an investment fund based in the United Arab Emirates plans to use $2 billion worth of USD1 to acquire a share in Binance, which is globally recognized as the leading cryptocurrency exchange.
Stablecoins maintain their value relative to stable assets such as the United States dollar. The issuers generate revenue from the interest earned on government bonds and other backing assets utilized for supporting these stablecoins.
Cryptocurrency has become one of the biggest contributors to the wealth of the Trump family.
He is transforming into a chief salesperson,” stated James Thurber, an emeritus professor from American University with extensive experience studying and teaching about global corruption. “This opens up the potential for significant conflicts of interest.
How Trump altered his stance on cryptocurrency
“I’m really into cryptocurrency,” Trump said to journalists while on board Air Force One last week.
journey to the Middle East
I’ve always been like that since the very start, even during the campaign.
It wasn’t always the case. In July 2019, during his first term, Trump stated that cryptocurrencies were “not currency” and their value was “extremely unstable and rooted in nothing.”
Unregulated crypto assets have the potential to enable illegal activities such as drug trafficking,” he further stated at that time. Despite stepping down from his position in 2021, Trump informed the Fox Business Network that Bitcoin, the globally recognized leading cryptocurrency, “appears to be a fraud.
In May 2024, Trump started pivoting during a cryptocurrency event held at his Mar-a-Lago club in Florida, where he was assured that financial supporters from the industry would invest heavily to support his reelection campaign. A significant moment also occurred last June when Trump participated in a fundraising event with high-dollar donors at the San Francisco residence of
David Sacks
.
People near Trump, such as his children and a wealthy businessman,
Elon Musk
, contributed to his deeper involvement with the sector. Sacks is currently serving as the Trump administration’s cryptocurrency czar, and several cabinet members—including the Commerce Secretary—
Howard Lutnick
and Defense Secretary
Pete Hegseth
— have long been passionate advocates for cryptocurrencies.
“I lack confidence in the dollar,” stated the Transportation Secretary.
Sean Duffy
said in a 2023
interview
I’m optimistic about Bitcoin.
Trump plus cryptocurrency: An opportune political alliance
A number of prominent cryptocurrency supporters initially had reservations about conventional political figures, yet they found themselves drawn to Trump over the past year. They were particularly frustrated with how Biden’s Securities and Exchange Commission forcefully pursued civil litigation against various key players in the crypto industry.
Since President Trump assumed office, numerous similar cases have been dismissed or put on hold, including an allegation that Justin Sun, a cryptocurrency founder born in China, along with his firm, was involved in market manipulation.
paid celebrities
for undisclosed promotions.
Sun, who previously spent $6.2 million on a artwork consisting of a banana attached to a wall with tape, and subsequently consumed the fruit, assisted the Trump family in launching World Liberty Financial by making an initial investment of $75 million.
Sun has
disclosed
On social media, he claims to be the largest owner of $TRUMP meme coins and will be going to Thursday’s dinner.
“I’m looking forward to connecting with all of you, discussing cryptocurrency, and exploring the future of our industry,” Sun stated beforehand.
He uploaded a clip of Trump accessing the exclusive event.
“Did you manage to spot the helicopter?” Trump asked.
“Absolutely! Really neat,” Sun replied.
Is the Trump family’s profit harming other cryptocurrency investors?
Trump has signed executive orders promoting the industry, including calls to create a
government bitcoin reserve
In March, Trump held the initial meeting of the group
cryptocurrency summit
at the White House.
However, many of the sector’s most prominent figures, who are frequently bold and vocal, have largely remained silent about Trump’s meme coins and other initiatives.
“It wouldn’t be appropriate for me to make remarks about President Trump’s actions,” stated Coinbase CEO Brian Armstrong at a recent public event.
In the meantime, one of the highest priorities for supporters of cryptocurrency in the legislature is a bill aimed at defining how digital assets should be regulated. This bill has made progress in the Senate. However, certain Democrats have attempted to block other pro-cryptocurrency laws due to concerns about the president’s personal involvement—viewing this dinner as an exceptionally problematic issue.
Senator Richard Blumenthal from Connecticut, who belongs to the Democratic party, stated that the event essentially amounted to hanging a ‘For Sale’ sign on the White House.
“It’s selling access through an auction,” Blumenthal stated during a Thursday press briefing.
The White House press secretary, Karoline Leavitt, stated that the president is participating “during his personal time.” Additionally, the administration emphasized that this event is not connected to Trump’s meme coin.
___
The Associated Press reporter Chris Megerian from Washington provided contributions to this report.
Will Weissert along with Alan Suderman from The Associated Press