How Trump’s Expanding Crypto and Media Ventures Spark Business Conflicts

After making headlines for munching on a $6.2 million banana as part of an art stunt, Chinese crypto mogul Justin Sun has once again captured the spotlight. This time, he’s dropped a whopping $30 million into World Liberty Financial, a cryptocurrency firm that has seen better days since its shaky launch in October.

Despite investor skepticism, there’s an intriguing twist: World Liberty Financial is backed by none other than Donald Trump. This strategic investment allowed Trump to start profiting from the venture, positioning him and his family to rake in an estimated $20 million or more.

While Justin Sun battles fraud allegations linked to his own crypto enterprise in the U.S., the reasons behind his interest in these non-tradable tokens remain unanswered. However, experts are raising red flags, suggesting that Trump’s expanding business empire could create new avenues for those looking to influence U.S. policy.

Richard Painter, former chief ethics lawyer under George W. Bush, warns, “The conflicts have grown substantially with the scope of his business empire.” This is a clear call to action for citizens to stay informed about the intertwining of business and politics.

In a statement, Trump’s team dismissed the concerns, emphasizing that during his first term, Trump distanced himself from his lucrative real estate ventures. “Unlike most politicians, he didn’t enter politics for profit—he’s here for the American people,” stated spokeswoman Karoline Leavitt.

However, as Trump gears up for a second term, little has been done to address the potential for corruption that lurks within his multifaceted business interests.

The specter of conflicts of interest has loomed large over Trump since his first term. The Trump International Hotel in D.C. became a hub for lobbyists and foreign diplomats, raising eyebrows and legal challenges regarding his potential profits.

With his business footprint growing—now including a publicly traded social media platform, a crypto firm, and connections to a Saudi-backed golf league—the ability for influence-seekers to funnel money into Trump’s ventures has become alarmingly straightforward.

According to NYU law professor Michael Ohlrogge, “The scale and ease to influence have drastically increased. You can only book so many hotel rooms.” Through digital platforms like Truth Social, foreign entities could buy ads to artificially inflate share prices.

While Trump’s media company boasts a market value exceeding $7 billion, actual ad sales remain shockingly low—less than $5 million this year. But given the stock market’s potential for amplification, minimal investment could yield massive returns for Trump, who holds a hefty stake in the company.

Trump’s entanglement with the crypto industry is particularly noteworthy, as he aims to advocate for it while holding personal stakes. His ambitious proposals, like a national Bitcoin reserve, aim to bolster the cryptocurrency market while raising eyebrows about potential self-serving interests.

Virginia Canter, Chief Ethics Counsel at Citizens for Responsibility and Ethics, asserts, “How crypto is regulated could directly impact Trump’s wealth, given his active role in the market.” While some view his actions as representative of the electorate, the conflict of interest is undeniable.

This week, Trump revealed his intention to nominate Paul Atkins, a known lobbyist for the crypto industry, to head the Securities and Exchange Commission (SEC). With expectations that he will ease enforcement of regulations, this could potentially reshape the landscape for companies like Trump Media, which has faced scrutiny under the current administration.

Last year, Justin Sun himself was caught up in an SEC investigation that accused him of failing to register certain digital assets appropriately. Under new leadership, it’s possible that the agency could drop such cases, raising further questions about the integrity of the regulatory process.

In a recent announcement, Sun highlighted Trump’s favorable stance on crypto, proclaiming, “The U.S. is becoming the blockchain hub, and Bitcoin owes it to @realDonaldTrump!” His enthusiasm for leading innovation is palpable, but so are the potential ethical implications.

In the realm of U.S. politics, the absence of strict conflict-of-interest laws is glaring. While the Constitution prohibits presidents from accepting gifts from foreign governments, past legal challenges have often fallen flat.

As he prepares to return to the White House, Trump has yet to announce any ethics guidelines, raising concerns among experts about the potential for unchecked influence. His continued promotion of his media ventures and the opaque dealings at venues like Mar-a-Lago underscore this risk.

Richard Painter warns that Trump’s actions could set a troubling precedent for future leaders: “He’s got the message he can do whatever he wants. Future presidents will think, ‘We can do whatever we want.'”