Senator Richard Blumenthal (D-CT), ranking member of the Senate Permanent Subcommittee on Investigations, has initiated a preliminary inquiry into President Donald Trump’s cryptocurrency ventures, focusing on potential conflicts of interest and legal violations.
Letters were dispatched to executives of Fight Fight Fight LLC and World Liberty Financial (WLFI), entities associated with the $TRUMP memecoin and the USD1 stablecoin, respectively.
$TRUMP Memecoin and Ethical Concerns
The investigation centers on concerns that these ventures may be facilitating breaches of government ethics and enabling transactions with foreign nationals under federal prosecution.
Blumenthal’s letters request detailed information on ownership structures, financial dealings, and any measures taken to address potential conflicts of interest. The $TRUMP memecoin, launched by Fight Fight Fight LLC, has particualry drawn scrutiny for its rapid crypto value fluctuations and promotional strategies.
Blumenthal highlighted a “Dinner with Trump” promotion, which offered top token holders an evening with the president, as a potential “pay-to-play” scheme. This initiative allegedly aimed to boost token sales amid declining interest. Further concerns arise from the coin’s ownership distribution. Blumenthal noted:
President Trump’s financial entanglements to the TRUMP coin, as well as the attempted use of the White House to host competitions to prop up the value of TRUMP, represents an unprecedented, pay-to-play scheme to provide access to the Presidency to the highest bidder.
Reports indicate that President Trump’s affiliated entities hold a significant portion of the token supply, potentially benefiting financially from market activities. Blumenthal’s inquiry seeks to determine if such arrangements violate federal ethics laws or the Constitution’s foreign emoluments clause.
World Liberty Financial and Foreign Investments
World Liberty Financial, co-founded by Zach Witkoff, is also under examination for its USD1 stablecoin and associated financial activities. Blumenthal’s letter raises concerns about substantial investments from foreign entities, including a reported $2 billion deal with an Emirati state-owned firm.
Trump is already using his stablecoin to get a cut of a $2 BILLION deal with a shady UAE fund.
The Senate will vote on the GENIUS Act, a crypto bill which would make the President’s grift even easier.
If we don’t fix that problem, no Senator should vote for it. pic.twitter.com/hD9IaHMNMB
— Elizabeth Warren (@SenWarren) May 6, 2025
The senator questions whether these investments could compromise national security or contravene legal prohibitions against foreign gifts to US officials. top House Democrat Maxine Waters noted:
I’m deeply concerned that the President launched his own stablecoin. I negotiated with my colleagues across the aisle for the past three years to create a safe regulatory framework for stablecoins. Now, we are pushing legislation through as quickly as possible without considering some of the key issues that will impact American investors and consumers.
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