Trump business deal with crypto firm reveals conflicts of interest
A situation arose where Crypto.com was under attack. The company faced scrutiny for over a year under President Joe Biden’s administration. Faced with increasing regulation, the company was given warnings by financial regulators regarding potential enforcement actions. However, everything changed with Donald Trump’s election in 2024. Suddenly, the threats against Crypto.com dissipated. The firm decided to increase its expenditure on a lobbyist with close ties to Trump and donated a significant $11 million to political committees connected to the Republican president. Shortly after these actions, the investigation was effectively abandoned. Subsequently, in August, Crypto.com revealed intentions to invest around $1 billion in assets in collaboration with a new partner – Trump’s social media firm.
Legal and ethics professionals see Crypto.com’s transformation from a target of inquiry to a business counterpart with Trump as a glaring example of conflicts of interest in Trump’s second term. Unlike his predecessors, Trump permitted his family businesses to engage in profitable deals with federally regulated companies, some of which considerably benefited from his administration’s policies. The collaboration between Crypto.com and Trump’s social media firm leaned heavily in favor of the latter. Despite contributing minimal funds, Trump Media and Technology Group gained a significant ownership share in Crypto.com’s Cronos token fund.
Kedric Payne, who formerly held a prominent position at the Office of Congressional Ethics, highlighted how past presidents have strived to avoid any perception of using their status for personal gain. Under Trump’s administration, there appears to be a pattern of pay-for-play, as Payne articulates. The implication being that companies had to provide financial rewards to the president to receive favorable treatment and policies, illustrating a clear conflict of interest.
When reached out for a comment, a spokesperson for Crypto.com, Victoria Davis sidestepped the concerns expressed by legal and ethics authorities. Davis simply stated that the company aimed to partner with entities that support cryptocurrencies and share their vision for the future. She praised Trump Media as a groundbreaker in digital media. On the other hand, Trump Media refrained from addressing specific queries regarding the deal. In a brief response, a company spokesperson dismissed the story as politically motivated.
The White House maintained that Trump had taken necessary steps to avoid conflicts of interest. Following his election, he transferred control of his business holdings to a trust managed by his sons. White House press secretary Karoline Leavitt emphasized that neither Trump nor his family have been involved in conflicts of interest. Meanwhile, Trump’s media organization, primarily focused on Truth Social, did not initially have cryptocurrency plans. However, by forging this significant business relationship with Crypto.com, it unexpectedly entered the crypto landscape.
