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Crypto.com’s remarkable transformation from a company under federal investigation to a business partner of Trump Media and Technology Group has raised significant ethical concerns among experts who see it as emblematic of potential conflicts of interest in President Trump’s second term.
For more than a year under the Biden administration, Crypto.com faced scrutiny from financial regulators who had indicated enforcement action was likely. However, following Donald Trump’s victory in the 2024 election, the company’s legal troubles appeared to evaporate.
Records show that Crypto.com increased its lobbying efforts through Jeff Miller, a Trump ally and GOP fundraiser who served as a finance chair for the president’s inaugural festivities. The company also donated $11 million to political committees tied to Trump, including $1 million to his inauguration in December and $10 million to MAGA Inc., the president’s super PAC, in February.
By March 27, the Securities and Exchange Commission formally dismissed its investigation into the cryptocurrency exchange. Just months later, in August, Crypto.com announced a billion-dollar partnership with Trump’s social media company.
“It seems like another example of the pay-to-play administration,” said Kedric Payne, ethics program leader at the nonpartisan Campaign Legal Center in Washington. “There is clearly a perception that in order to get favorable policies and acts from the administration, a company needs to provide a financial benefit to the president.”
The White House has pushed back against these characterizations. Press secretary Karoline Leavitt stated, “Neither the President nor his family have ever engaged, or will ever engage, in conflicts of interest,” pointing to Trump’s decision to place his business holdings in a trust controlled by his sons shortly after the election.
Crypto.com spokeswoman Victoria Davis denied any connection between the SEC investigation’s closure and the company’s political activities or business deals. “Ultimately, the investigation was closed because there was no legitimate case to pursue,” Davis said, describing Trump Media as “a pioneer in digital media” that shares Crypto.com’s vision for the future of cryptocurrency.
Trump Media and Technology Group, which is majority owned by the president, launched Truth Social in early 2022 after Trump was banned from Twitter and Facebook following the January 6, 2021 Capitol riot. The company has faced numerous challenges, including an SEC investigation into its SPAC merger that resulted in penalties, a board member sentenced to prison for insider trading, and litigation from co-founders claiming they were cheated out of shares.
Financial performance has been problematic for the company as well. Trump Media lost more than $400 million last year and its stock has fallen dramatically from a high of about $62 when it began trading in March 2023 to around $10.50 recently. These struggles have pushed executives to explore new revenue streams, including streaming, financial services, and cryptocurrency.
The deal with Crypto.com appears highly favorable to Trump Media. Under the arrangement, Crypto.com committed approximately $1 billion worth of its Cronos tokens to a new joint venture called Trump Media Group CRO Strategy, while Trump Media’s contribution was largely limited to “a license to use certain intellectual property,” according to SEC filings.
While both companies will have “majority ownership” in the venture along with financial services firm Yorkville Advisors, the exact percentage that Trump Media will hold has not been disclosed. This has led to questions about the economics of the arrangement.
“When you consider the investigation into Crypto.com was dropped, the economics of this look more like a plea deal than a business deal,” said Corey Frayer, a cryptocurrency policy expert who served as a senior SEC official during the Biden administration.
The Crypto.com partnership is not an isolated case. Other cryptocurrency figures have developed business relationships with Trump’s ventures since his election. Changpeng Zhao, founder of Binance, received a pardon from Trump after participating in a complex deal involving a UAE sovereign wealth fund that invested $2 billion in World Liberty Financial, a Trump family crypto company.
Similarly, the SEC paused an investigation into crypto entrepreneur Justin Sun after he reportedly purchased approximately $200 million worth of Trump crypto offerings.
Hilary Allen, a banking and cryptocurrency law professor at American University, summarized the ethical concerns: “With Crypto.com, we have an investigation being dropped and an investment after the fact. People can draw their own conclusions.”
Despite these questions, the companies appear eager to expand their partnership. In October, Crypto.com announced plans to create an online marketplace allowing Truth Social users to wager on world events—including the outcome of elections.
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8 Comments
It’s troubling to see the revolving door between Trump’s allies, political fundraising, and regulatory decisions that benefit his business partners. This smells of cronyism and demands rigorous oversight.
While I’m generally supportive of public-private partnerships, this situation with Crypto.com and the Trump administration seems highly problematic. The appearance of impropriety is hard to ignore.
I’m curious to learn more about the specifics of this deal and the timeline of events. The sudden dismissal of the SEC investigation raises red flags that should be carefully examined.
Absolutely. Transparency is crucial here to ensure the integrity of our financial markets and political system.
This deal raises significant questions about potential conflicts of interest. It’s concerning to see Crypto.com’s ties to Trump’s inner circle and the rapid dismissal of the SEC investigation. The public deserves transparency and accountability around these arrangements.
While I appreciate Trump’s efforts to work with private companies, this partnership with Crypto.com seems highly questionable. The timing and circumstances raise major ethical concerns that warrant close scrutiny.
I agree. Any appearance of impropriety or quid pro quo with regulators and political donations needs to be thoroughly investigated.
This is a concerning development that warrants deeper investigation. The public deserves to know if there were any undue influences or conflicts of interest involved in Crypto.com’s dealings with the Trump administration.