For more than a year, Crypto.com found itself under intense scrutiny from federal regulators during President Joe Biden’s administration. As part of a broader crackdown on the largely unregulated cryptocurrency sector, financial watchdogs warned the company that enforcement action was likely. The investigation loomed heavily over the firm, signaling potential legal and financial consequences.
That cloud lifted abruptly after Donald Trump won the 2024 presidential election. Almost overnight, Crypto.com’s regulatory troubles appeared to fade away.
According to public records, the crypto exchange sharply increased its political spending soon after the election. It hired a lobbyist closely tied to Trump’s inner circle and donated a total of $11 million to political committees aligned with the Republican president. Within months, the investigation was formally dropped. By August, Crypto.com revealed it was committing roughly $1 billion in assets to a new venture—this time with Trump’s own social media company.
Legal scholars and ethics watchdogs say Crypto.com’s rapid shift from regulatory target to business partner highlights broader concerns surrounding Trump Media’s Crypto Deal Raises Questions About Potential Conflicts of Interest. Critics argue that Trump’s second term has blurred the line between public office and private gain, as his family-controlled businesses have entered lucrative arrangements with firms overseen by federal regulators.
In this case, the deal strongly favored Trump Media and Technology Group, a company that has struggled financially since its launch in 2021. Despite posting hundreds of millions of dollars in losses, Trump Media contributed relatively little cash to the partnership while securing a significant ownership stake in a new treasury tied to Crypto.com’s Cronos token.
Ethics Concerns Take Center Stage
Historically, U.S. presidents have gone to great lengths to avoid even the appearance of profiting from the office. Kedric Payne, a former senior attorney with the Office of Congressional Ethics, said past administrations treated such boundaries as essential.
“It seems like another example of a pay-to-play administration,” said Payne, now head of ethics at the nonpartisan Campaign Legal Center. “There’s a growing perception that companies must provide financial benefits to the president in order to receive favorable treatment.”
Crypto.com spokeswoman Victoria Davis declined to directly address these ethical concerns, saying only that the company seeks partnerships with organizations that support the future of crypto. She described Trump Media as “a pioneer in digital media.”
Trump Media also pushed back, with a company spokesperson dismissing media scrutiny as politically motivated. Meanwhile, the White House has maintained that Trump took appropriate steps to avoid conflicts by placing his business interests into a trust controlled by his sons.
“Neither the President nor his family have ever engaged, or will ever engage, in conflicts of interest,” White House press secretary Karoline Leavitt said.
Trump Media’s Shift Into Crypto
Trump Media was not originally built with cryptocurrency in mind. Its flagship platform, Truth Social, launched in early 2022 after Trump was banned from major social networks following the January 6 Capitol attack. While Trump has since been reinstated on those platforms, Truth Social struggled to gain traction.
The company faced regulatory trouble early on when the SPAC that funded its launch was investigated by the SEC for misleading investors, resulting in hefty penalties and even a prison sentence for insider trading involving a board member. After going public in 2024, Trump Media also fought lawsuits from co-founders who claimed they were unfairly denied shares.
Financially, the company has yet to turn a profit, losing more than $400 million last year alone. Its stock price has fallen sharply from early highs, pushing executives to explore new revenue streams—including crypto, streaming, and financial services.
This pivot mirrored a dramatic shift in Trump’s own stance on digital assets. Once calling Bitcoin “a scam,” Trump later embraced crypto during his campaign. His family launched World Liberty Financial, sold tokens, and promised to roll back industry regulations.
A Pattern of Crypto Connections
Crypto.com is not the only firm benefiting from Trump-aligned crypto ventures. Binance founder Changpeng Zhao received a presidential pardon months after a deal involving a UAE sovereign wealth fund invested billions into Trump-linked crypto projects. Similarly, the SEC paused an investigation into crypto entrepreneur Justin Sun after he reportedly purchased $200 million worth of Trump-branded crypto offerings.
Critics say these developments reinforce concerns that Trump Media’s Crypto Deal Raises Questions About Potential Conflicts of Interest, particularly when regulatory actions appear to align with political or financial support.
Inside the Dropped SEC Investigation
During 2023 and 2024, Crypto.com fought potential enforcement action from the SEC. After Trump’s reelection, the company began donating heavily to Trump-affiliated political groups, including $1 million for his inauguration and $10 million to a pro-Trump super PAC.
At the same time, Crypto.com increased lobbying efforts through a powerful GOP fundraiser with close ties to Trump. Shortly thereafter, the SEC investigation was officially dismissed.
Crypto.com insists the outcome had nothing to do with politics. “The investigation was closed because there was no legitimate case,” Davis said, adding that any suggestion otherwise is inaccurate.
A Deal That Raises Eyebrows
Just days before the investigation was dropped, Trump Media announced new investment funds with a “Made in America” theme and named Crypto.com as a digital partner. Months later, the two companies unveiled a joint venture designed to serve as a treasury for Crypto.com’s Cronos token.
Under the proposed terms, Crypto.com is contributing the vast majority of capital, while Trump Media’s role largely involves licensing intellectual property. Despite this imbalance, Trump Media is expected to receive a sizable ownership stake.
Former SEC official Corey Frayer called the arrangement troubling. “When an investigation is dropped and a massive investment follows, it looks less like a business deal and more like a settlement,” he said.
Law professor Hilary Allen echoed those concerns, noting that the sequence of events invites skepticism. “People can draw their own conclusions,” she said.
Trump Media CEO Devin Nunes has defended the partnership, calling it a glimpse into “the future of finance.” Crypto.com appears eager to expand the relationship further, including plans for an online marketplace that would allow Truth Social users to wager on world events—even election outcomes.
As Trump’s business empire grows deeper ties to crypto, critics say the central issue remains unresolved: Trump Media’s Crypto Deal Raises Questions About Potential Conflicts of Interest, and those questions are unlikely to fade anytime soon.
