Summary:
Chinese crypto entrepreneur Justin Sun invested $30m in World Liberty Financial, linked to Donald Trump.
Experts warn of growing conflicts of interest due to Trump's expanding business ventures.
Trump's pro-crypto stance raises concerns about potential personal financial benefits.
The SEC's potential shift under Trump's nominee could lessen enforcement against crypto firms.
Ethics experts fear Trump's actions may set a precedent for future presidents' conduct.
Not long after buying and publicly consuming a $6.2m banana as part of an artworld stunt, Chinese crypto entrepreneur Justin Sun made another eye-catching purchase, investing $30m into a cryptocurrency firm called World Liberty Financial. This company had struggled since its October launch, but it offered a potentially enticing feature: the chance to do business with a firm promoted by none other than Donald Trump.
Mr. Sun's investment allowed the president-elect to begin profiting from the venture, positioning Trump and his family to collect roughly $20m and potentially much more. However, Mr. Sun, currently facing fraud charges in the US, did not clarify his interest in the tokens, which cannot be traded. This situation raised alarm among government ethics experts, who view it as a sign that Trump's expanding business ventures facilitate monetary influence on US policy.
"The conflicts have grown substantially with the scope of his business empire," said Richard Painter, a former White House chief ethics lawyer.
In response to concerns, Trump's team stated that during his first term, he distanced himself from his multi-billion-dollar real estate empire and forewent his government salary. They emphasized that Trump is passionate about serving the American people rather than pursuing profit.
New Opportunities
Trump has previously faced questions about conflicts of interest. His Trump International Hotel in Washington, DC, became a hub for lobbyists and foreign diplomats, raising accusations of profiting indirectly from his office.
Experts argue that the growth of Trump's business empire, now including a publicly traded social media company and ties to a golf league backed by Saudi Arabia, allows for more discreet financial influence. Michael Ohlrogge, a law professor, noted that the scale and ease of moving money have increased significantly.
His Pro-Crypto Stance
Trump's involvement in the crypto industry is particularly notable. He has expressed intentions for regulatory rollbacks and even a national Bitcoin reserve. With his active role in the crypto market, his financial interests could be directly affected by how the industry is regulated.
Nik Bhatia, founder of Bitcoin Layer, suggested that while Trump's pro-crypto stance may reflect the electorate's interests, it also poses potential conflicts of interest benefiting his company.
This week, Trump announced plans to nominate Paul Atkins, a crypto lobbyist, to lead the Securities and Exchange Commission (SEC), which could lead to a reduction in enforcement actions against firms like Trump Media, further complicating the ethical landscape.
Fewer Guardrails
US law imposes few limits on conflicts of interest for presidents. While the Constitution bars presidents from accepting gifts from foreign governments, previous lawsuits against Trump regarding conflicts of interest have been dismissed. As Trump prepares for a potential second term, he has yet to outline an ethics plan and continues to profit from his business ventures.
Ethics experts express concern that Trump's approach might set a precedent for future presidents, suggesting that he has demonstrated that significant ethical boundaries can be disregarded.
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