### Trump's Family Crypto Ventures Spark Conflict-of-Interest Concerns

Former President Donald Trump is facing harsh criticism from both Republicans and Democrats over his family's involvement in cryptocurrency projects that some argue could lead to unethical influence from foreign investors. Concerns are being raised over investments in two Trump-linked projects—the $TRUMP meme coin and World Liberty Financial—suggesting that foreign entities might be attempting to sway the White House.

The issue came to a head when GD Culture Group, a Chinese e-commerce company with no revenue and only eight employees, announced plans to invest up to $300 million in the $TRUMP meme coin. This announcement coincided with Trump's pending decision on whether to allow TikTok to continue operating in the United States, a move that Congress has tried to block.

Critics draw parallels between Trump's situation and that of Hunter Biden, who faced allegations of influence-peddling during Joe Biden’s vice presidency. Former U.S. Representative Charlie Dent, who once chaired the House Ethics Committee, emphasized the need for Trump to set boundaries for his family to avoid further controversies.

The Trump Organization maintains that Donald Trump has no direct involvement in these crypto ventures, as his assets were placed in a trust managed by his children when he entered the White House. However, entities like World Liberty Financial, which is majority-owned by a Trump business entity, continue to draw scrutiny. The company boasts Donald Trump Jr., Eric Trump, and Zach Witkoff, son of White House advisor Steve Witkoff, among its key executives.

Justin Sun, a Chinese investor and founder of Tron, initially invested $30 million in World Liberty Financial shortly after Trump took office in 2025, and his investment has since grown to $75 million. According to Mark Hays from Americans for Financial Reform, Sun's involvement poses a "potential security risk." Hays pointed out that the crypto market could facilitate opaque financial transactions, raising the specter of pay-to-play politics.

The controversy extends to an Abu Dhabi-based investment firm's plan to use USD1, a stablecoin issued by World Liberty Financial, to make a $2 billion investment in Binance, a China-linked crypto exchange. Binance's founder, Changpeng Zhao, was jailed last year in the U.S. on federal money laundering charges. Critics argue that the Trump family's ventures could complicate efforts to regulate the crypto industry properly.

Moreover, a recent Bloomberg analysis revealed that 19 of the top 25 holders of the $TRUMP coin had purchased it on international exchanges, suggesting a significant portion of its investment comes from abroad. This dynamic has alarmed some lawmakers and led to the recent defeat of the GENIUS Act, a bill aimed at establishing federal rules for stablecoins.

While Trump's early steps to support the crypto industry—like appointing David Sacks as the White House’s first crypto czar—were initially welcomed, many now fear that his family's financial dealings may undermine regulatory efforts. Mike Chan of Deep Ventures described the Trump family's crypto dealings as a “big conflict of interest,” arguing that they undermine the legitimacy of both regulatory efforts and the industry itself.

Sen. Cynthia Lummis, known as the "Crypto Queen" on Capitol Hill, commented that the Trump family's interests had created "challenging" optics but defended Trump's commitment to being a pro-digital assets president.

As the debate continues, it remains to be seen how these concerns will impact both the Trump family and the broader cryptocurrency industry.