The U.S. Senate Permanent Subcommittee on Investigations (PSI), led by Senator Richard Blumenthal, has launched an inquiry into the cryptocurrency activity surrounding Donald Trump. The investigation targets the TRUMP memecoin and the World Liberty Financial (WLFI) project, which are suspected of potentially violating ethical standards and U.S. laws.
Suspicions of Conflicts of Interest and Attempts to Circumvent Restrictions
On May 6, PSI sent letters to the heads of Fight Fight Fight LLC and WLFI — Bill Zanker and Zach Witkoff. The investigation was prompted by reports that these companies may have granted investment access to foreign individuals and states currently under investigation by the U.S. This could violate constitutional provisions prohibiting the receipt of benefits from foreign entities.
The Senate has requested Fight Fight Fight LLC and WLFI provide documentation on ownership, funding, foreign connections, and insider trading safeguards. PSI is particularly focused on how the projects prevent foreign state influence and comply with U.S. sanctions laws.
The TRUMP Token and “Dinner With the President”
The TRUMP token — a memecoin launched by Fight Fight Fight LLC — surged after launch but later plummeted. Senator Blumenthal stated that the price pattern resembles a pump-and-dump scheme, where only insiders profit.
To reignite interest, the company announced a raffle for 220 seats at a dinner with Trump. This move caused a 52% spike in the token's value but also raised additional concerns about whether the former president is leveraging his reputation for personal gain.
In April, Trump teased a new project — reportedly a Monopoly-style game. The game will allegedly feature in-game assets tied to real estate and NFTs, raising further questions about whether it constitutes a new crypto business for personal enrichment.
WLFI and Foreign Investments
WLFI, another crypto initiative, refers to Donald Trump as its “chief crypto ally” and labels his sons “Web3 ambassadors.” The project received $75 million from TRON founder Justin Sun, who is under SEC investigation. Another $25 million came from DWF Labs, a firm linked to market manipulation and Russian banks.
WLFI is also involved in the USD1 stablecoin project, reportedly linked to Binance’s $2 billion initiative and Abu Dhabi’s MGX fund. This has raised red flags regarding U.S. anti-money laundering and sanctions compliance.
Senator Elizabeth Warren has previously urged the delay of stablecoin legislation due to alleged corruption involving WLFI and USD1.
New MEME Act and Rising Political Tensions
In response to the investigation, Senators Chris Murphy and Sam Liccardo introduced the MEME Act, which would bar the president and senior officials from creating or promoting crypto assets. Murphy described the TRUMP memecoin as “the most corrupt action ever taken by a U.S. president.”
According to Chainalysis, of approximately 2 million wallets that bought TRUMP, around 764,000 are now in the red. Only 58 addresses earned more than $10 million each, collecting a combined $1.1 billion in profits.
The token peaked at $2.7 billion following the dinner announcement but later dropped to $2.17 billion. Analysts report that from April 15, another 100,000 wallets bought in despite the high volatility.
Team Revenues in the Hundreds of Millions
Chainalysis data shows that since January, over $324 million in trading fees have gone to wallets linked to the project team. The token’s code ensures a portion of each fee is automatically sent to the developers, guaranteeing them steady income regardless of market conditions.
The TRUMP token drew attention not only for its price swings but also for its revenue distribution model. Only 20% of the tokens are in circulation, while 80% are locked for three years. However, income from operations is already being collected. PSI is investigating who controls these assets and who actually receives the funds.
The Senate committee continues to examine the financial operations and foreign ties of Fight Fight Fight LLC and WLFI. The Trump administration and the White House have yet to respond.
See Also:
- "Trump is Killing Crypto" – Expert Warns of Market Risks
- Warren: Fed Chairman Jerome Powell's Termination Will Crash Markets
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