US Democrat lawmakers have sent a formal request to the US Treasury, demanding access to suspicious activity reports (SARs) concerning several crypto ventures associated with former President Donald Trump. This move represents the latest development in an ongoing probe into Trump’s involvement in the digital asset space.
Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin penned the letter, dated May 14, addressed to Treasury Secretary Scott Bessent. The letter requests all SARs filed since 2023 pertaining to World Liberty Financial (WLF) and the Official Trump (TRUMP) token.
What are Suspicious Activity Reports (SARs)?
Financial institutions in the US are legally obligated to file SARs with the Financial Crimes Enforcement Network (FinCEN), a bureau within the Department of the Treasury. These reports are triggered by the detection of suspicious activities, which may include potential money laundering, fraud, or other financial crimes.
Scope of the Investigation
The lawmakers’ request is broad in scope, seeking any SARs that mention a range of entities and individuals, including:
- WinRed (Republican digital fundraising platform)
- America PAC
- Elon Musk
- Political Action Committees (PACs)
- Donald Trump
- World Liberty Financial (WLF)
- TRUMP token
- MELANIA token
- Justin Sun
The deadline for providing the requested SARs is May 30.
Justification for the Probe
The Democratic lawmakers assert that their investigation aims to determine whether new legislation is needed to prevent violations related to campaign finance, consumer protection, bribery, securities fraud, and other anti-corruption laws. They also aim to safeguard against potential financial misconduct involving current or future federal officials.
Concerns about WLF and the TRUMP Token
The letter highlights specific concerns regarding WLF, suggesting it could be exploited as a vehicle for foreign influence peddling. This concern stems from the fact that a portion of WLF’s token sale was directed towards foreign investors, who are often subject to less stringent regulations compared to their US counterparts.
Furthermore, Justin Sun’s investment in WLF and the subsequent pause in the SEC’s lawsuit against him have also raised eyebrows. The lawsuit alleged that Sun violated securities laws.
The TRUMP token is also under scrutiny because the identities of its purchasers are not publicly disclosed. This lack of transparency raises the possibility that individuals or entities could attempt to curry favor with Trump by acquiring the coin.
Broader Context: Democratic Scrutiny of Trump’s Crypto Activities
This request for SARs is part of a broader effort by Democratic lawmakers to examine Trump’s forays into the cryptocurrency world.
Previously, Democratic senators sent a letter to the Department of Justice and the Treasury Department expressing concerns about Trump’s ties to crypto exchange Binance and potential conflicts of interest in regulating the crypto industry.
Additionally, Democratic lawmakers launched a multi-pronged attack targeting Trump’s ability to profit from his crypto initiatives, proposing two bills and initiating a subcommittee inquiry.
Implications and Future Developments
The outcome of this investigation remains uncertain. However, it underscores the growing interest and concern among lawmakers regarding the intersection of cryptocurrency, politics, and potential financial misconduct. The requested SARs could provide valuable insights into the financial activities surrounding Trump’s crypto ventures and potentially lead to further regulatory action or legislative reforms.
