"No Doubt About Conflict of Interest"
Criticism of "Clear Corruption" Continues
White House:
"No Conflict of Interest... Will Make U.S. the Center of Cryptocurrency"
Donald Trump Jr. and Eric Trump, sons of President Donald Trump, are taking a commemorative photo at the Nasdaq Stock Market in New York on the 13th of last month (local time). Photo by Reuters Yonhap News
As the family of U.S. President Donald Trump has officially entered the cryptocurrency business, controversy over conflicts of interest has erupted once again. Critics point out that while the Trump administration is easing regulations on cryptocurrencies, his family is reaping enormous profits.
According to NBC News in the United States on September 4 (local time), American Bitcoin, a cryptocurrency mining company in which Donald Trump Jr., the president's eldest son, and Eric Trump, his second son, each hold about a 20% stake, was listed on the New York Stock Exchange the previous day. The company was listed on Nasdaq through a merger with Gryphon Digital Mining, a Nasdaq-listed company.
On this day, the share price of American Bitcoin soared as much as 39% during trading, reaching $9.60 (approximately 13,375 won). It closed at $8.04 (about 11,201 won), lower than its opening price of $9.22.
The company explained in a press release that it was established to increase its holdings of the cryptocurrency Bitcoin through computer mining or strategic Bitcoin purchases. The media reported, "Investors holding shares in American Bitcoin expect the company to grow its Bitcoin assets at a faster pace than its competitors," adding, "The company expects the price of Bitcoin to continue to rise."
However, the listing of American Bitcoin has sparked controversy, with accusations that the Trump family is profiting from the cryptocurrency business by leveraging the president's influence. On September 2, it was estimated that the value of the Trump family's stake in the digital tokens issued during the initial public sale by World Liberty Financial (WLFI), a virtual asset company operated by the Trump family, reached up to $5 billion (about 6.97 trillion won).
Last week, Trump Media & Technology Group, the parent company of Truth Social, the social networking service operated by President Trump, announced that it had signed a contract to purchase Crypto.com and its virtual asset, Cronos (CRO). Following this announcement, the value of CRO surged by 69%.
According to Bloomberg's estimates, as of around 1 p.m. on this day, Eric Trump's stake in American Bitcoin was valued at up to $600 million (about 835.98 billion won). Donald Trump Jr. also holds a stake, but the size has not been confirmed. Donald Trump Jr.'s side did not respond to requests for comment.
"No Doubt About Conflict of Interest" "Clear Corruption" Criticisms Continue
Virginia Canter, chief legal counsel for ethics and anti-corruption at Democracy Defenders Action, an organization opposing authoritarianism, stated, "There is no doubt that this is a conflict of interest." She pointed out, "President Trump can appoint regulators overseeing the cryptocurrency industry and could also create an unfair environment where other cryptocurrency market participants may believe they will be disadvantaged if they do not compete or cooperate with Trump family businesses."
Elizabeth Warren, Democratic Senator from Massachusetts, also posted on X (formerly Twitter) the previous day, calling it "clear corruption." The Trump Group did not respond to requests for comment.
While estimates of the Trump family's profits from the cryptocurrency business vary, some analyses suggest that they have earned up to $500 million (about 696.3 billion won) through the World Liberty Platform, which was launched last year. In May, co-founder Jack Witkoff announced that an Abu Dhabi-based investment firm had purchased $2 billion (about 2.78 trillion won) worth of stablecoins.
In July, Trump Media announced that it had secured about $2 billion (about 2.78 trillion won) worth of Bitcoin and related assets, accounting for about two-thirds of the company's total liquid assets. The Donald J. Trump Revocable Trust, established by President Trump before returning to the White House, holds a 52% stake in Trump Media.
There were also reports that the initial sales of OfficialTrump, President Trump's meme coin, generated $350 million (about 487.41 billion won), but the specific ownership structure and the Trump family's direct involvement remain unclear.
White House: "No Conflict of Interest... Will Make U.S. the Center of Cryptocurrency"
The White House emphasized that the president is not involved in the management of family businesses. In a statement, White House spokesperson Karoline Leavitt said, "Repeated manipulative reports by the media only fuel public distrust," and "Neither the president nor his family has ever been involved in a conflict of interest." She added, "We are focused on creating innovation and opportunity to fulfill the president's promise to make the United States the global center of cryptocurrency."
Eric Trump recently claimed at a conference, "The Bitcoin community is supporting my father more passionately than ever." In reality, the cryptocurrency industry is emerging as a major donor force in U.S. politics. According to Politico, the cryptocurrency industry super PAC (Political Action Committee) Fairshake was recorded as the largest donor group in the 2024 election, and ahead of next year's midterm elections, it has already raised $140 million (about 195.02 billion won).
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