Investigation Launched into Trump’s Private Memecoin Dinner
In a significant development, a prominent House Democrat has initiated a probe into a private dinner hosted by former US President Donald Trump with investors of his official TRUMP memecoin. This investigation, occurring a week after the event, aims to address various ethical and legal concerns highlighted by several Democratic lawmakers.
Scrutiny Over Trump’s Memecoin Gala Attendees
On Wednesday evening, Jamie Raskin, the senior Democrat on the House Judiciary Committee, formally requested that President Trump disclose the identities of the guests who attended his exclusive memecoin event last week. In a letter obtained by The Washington Post, Raskin expressed the need for transparency regarding the attendees and the origins of the substantial investments made in Trump’s memecoin.
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Earlier in the year, an announcement was made that the top 220 TRUMP holders on the cryptocurrency’s website leaderboard would receive an invitation to the May 22 event, held at Trump’s private Members-Only Club in Washington, D.C. Furthermore, the top 25 investors were promised an exclusive reception with Trump himself, alongside a guided tour of the White House. These arrangements have raised suspicions among lawmakers about potential foreign influence, as foreign entities investing in the token could violate federal laws prohibiting federal officials from accepting gifts without congressional approval.
The letter emphasized, “Releasing this list will provide the American public with vital information about who is funneling tens of millions of dollars to our President, allowing us to discern what they might be receiving in return beyond essentially worthless memecoins.” A blockchain analytics firm, Nansen, reported a month ago that the top 100 TRUMP holders increased their holdings by over 940,000 tokens within an hour following the announcement.
Particularly noteworthy is the fact that Justin Sun, the founder of Tron and an investor in World Liberty Financial (WLFI), secured his place at the event with 1.17 million TRUMP tokens, valued at approximately $18.5 million during the event.
Democratic Concerns Over Potential Conflicts of Interest
Representative Raskin has identified the memecoin dinner as the latest instance of President Trump allegedly intertwining his business pursuits with his presidential role. “Profiting from the memecoin is just one of the bewildering array of schemes where you and your family have financially benefited after re-entering office,” stated the letter, referencing the Trump family’s business engagements in the Middle East.
The Washington Post further reported that the congressman inquired in his letter whether the White House or Trump’s companies ensured that the finances used to acquire the memecoin were unconnected to terrorist groups, drug cartels, or other illicit activities.
Last week, Karoline Leavitt, the White House press secretary, asserted that the memecoin dinner posed no conflict of interest to President Trump, clarifying that it was not an official White House event, and the President attended in a personal capacity.
Despite these assurances, Representative Maxine Waters, a leading Democrat on the House Financial Services Committee, alongside other committee Democrats, introduced legislation known as H.R. 3573, or the Stop TRUMP in Crypto Act. This bill, co-sponsored by 14 House Representatives, seeks to prohibit the US President, Vice President, Members of Congress, and their immediate families from engaging in any cryptocurrency ventures for personal gain while holding office.
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