Crypto.com faced a federal investigation under President Biden, but the probe ended after Donald Trump's 2024 election victory. The company then donated millions to Trump-linked groups and formed a $1 billion venture with Trump's social media firm. Legal experts highlight this as a potential conflict of interest in Trump's second term.
Crypto.com endured scrutiny from President Joe Biden's administration for over a year, with financial regulators signaling likely enforcement action amid efforts to regulate cryptocurrencies. Following Donald Trump's 2024 election win, the company's fortunes shifted rapidly. It increased lobbying expenditures to Jeff Miller, a Trump ally and GOP fundraiser, and contributed $11 million to political committees tied to the president, including $1 million for his inauguration and $10 million to MAGA Inc.
By March 27, the Securities and Exchange Commission (SEC) dismissed the investigation. Crypto.com's spokeswoman, Victoria Davis, stated the closure resulted from no legitimate case, denying any link to political activities. In August, Crypto.com announced a partnership with Trump Media and Technology Group, Trump's majority-owned company behind Truth Social. The venture, Trump Media Group CRO Strategy, will serve as a treasury for Crypto.com's Cronos token, with Crypto.com committing about $1 billion in assets. Trump Media contributes a license to intellectual property and receives a substantial ownership stake with minimal cash input, per SEC filings.
Ethics experts view this as emblematic of conflicts in Trump's presidency. Kedric Payne, former top attorney for the Office of Congressional Ethics, now at the Campaign Legal Center, called it a 'pay-to-play' example, noting presidents historically avoid profiting from office. Law professor Hilary Allen described the sequence—dropped probe followed by investment—as troubling. Trump Media CEO Devin Nunes praised the deal as trustworthy and futuristic for finance.
The White House maintains Trump has avoided conflicts by placing holdings in a trust controlled by his sons. Trump Media dismissed the reporting as politically motivated. This deal fits broader patterns, including Trump's pardon of Binance founder Changpeng Zhao after a UAE-linked investment in a Trump family crypto firm, and a paused SEC probe of Justin Sun post his $200 million purchase of Trump crypto offerings.
