Brandon LaRoque, a veteran from Raleigh, North Carolina, lost his life savings of approximately $3 million in XRP cryptocurrency to a hack in October. This personal tragedy highlights broader risks in the unregulated crypto industry, which has seen President Donald Trump and his family earn billions while rolling back regulations. Experts warn that such deregulation enables scams and allows crypto interests to influence politics.
Brandon LaRoque, an Eagle Scout and veteran who ran the Goat Bar in Raleigh for 21 years with his wife, treated cryptocurrency as his retirement savings. Every day after work, he bought XRP with extra cash to avoid banks, selling portions monthly for expenses like mortgage payments. On October 15, at 4 a.m., he discovered his wallet empty: 1,210,000 XRP, worth about $3 million, had vanished. "I woke my wife up, literally in tears," LaRoque recounted. He lost 12 pounds in the first week from stress, seeing his dreams disappear. Local police and the FBI offered little help, estimating less than a 1 percent recovery chance.
LaRoque, a Trump supporter, criticized the president's crypto involvement: "I don’t agree with the Trump coin... I think they’re all terrible." He urged Trump to work with Congress for safer regulations, noting banks provide human support unlike crypto.
Molly White, a software engineer and newsletter author on tech-finance intersections, explained crypto as speculative digital assets prone to volatility and scams like "rug pulls," where creators inflate and dump tokens. Since 2021, losses total nearly $80 billion, a conservative figure including everyday people and institutions. High-profile collapses, such as FTX in 2022 under Sam Bankman-Fried, who is now imprisoned, underscore the lack of protections compared to insured bank deposits.
Trump, once calling bitcoin a "scam," shifted post-inauguration. His family launched World Liberty Financial (WLFI) in August 2024 with partners like Zach Witkoff, son of Trump's envoy Steve Witkoff. They've earned hundreds of millions from token sales, taking a 75 percent cut. Tokens offer little utility, seemingly serving to buy favor. Justin Sun, facing SEC fraud allegations, bought $75 million in WLFI tokens and gained an advisory role; his lawsuit was later paused. Similarly, Coinbase's multimillion-dollar contributions preceded dismissal of its SEC case.
The administration's approach defangs regulators via executive orders, installing industry insiders. A "Bitcoin Strategic Reserve" holds seized crypto for speculation, potentially creating an unmonitored slush fund. Crypto firms spent over $150 million in 2024 elections via super PACs, influencing races and targeting consumer advocates like Sen. Sherrod Brown, whom they spent $40 million to unseat. Plans for 2026 midterms include $100 million commitments to install pro-crypto legislators.
White compared it to El Salvador's failed bitcoin adoption under President Nayib Bukele, which wasted public funds and led to thefts. She estimates the Trump family has made billions, escalating conflicts where the president directly profits from deregulation, eroding norms against in-office enrichment.
