Trump’s Crypto Empire Accused of Fueling ‘New Age of Corruption’ in House Report
Introduction
A new congressional staff report alleges that former President Donald Trump leveraged his political position to amass an unprecedented cryptocurrency fortune, creating what investigators call a “new age of corruption.” Released by House Judiciary Committee Ranking Member Jamie Raskin, the 50-page document, titled “Trump, Crypto, and a New Age of Corruption,” details how policy decisions, regulatory rollbacks, and presidential pardons allegedly directly benefited Trump’s personal crypto holdings. The report values Trump’s cryptocurrency portfolio as high as $11.6 billion, with income from crypto asset sales reportedly exceeding $800 million in the first half of 2025 alone. This article breaks down the report’s key allegations, the mechanisms of this alleged “shadow lobbying,” and the profound implications for the crypto industry and U.S. governance.
The Anatomy of an $11.6 Billion Crypto Portfolio
The House report provides a staggering valuation of President Trump’s cryptocurrency holdings, placing it at approximately $11.6 billion. This figure is central to the allegations of a structural conflict of interest. According to the document, this portfolio generated over $800 million in income from crypto asset sales in the first half of 2025.
The report identifies two primary assets underpinning this wealth: holdings in World Liberty Financial (WLF)—the Trump family’s crypto venture—and the memecoin TRUMP. The committee argues that by holding governance tokens instead of traditional equity, the President benefits directly from price appreciation driven by his own policy announcements and official actions. This creates a dynamic the report characterizes as “self-dealing,” where public policy and private financial gain are inextricably linked. The sheer scale and rapid accumulation of this wealth, as outlined in the report, form the foundation for the corruption allegations.
“Shadow Lobbying”: How Crypto Bypasses Campaign Finance Laws
A central thesis of the report is the concept of “shadow lobbying.” It describes a mechanism where “foreign actors and corporate interests” can influence U.S. policy by purchasing tokens or providing liquidity to Trump-linked decentralized finance (DeFi) protocols, such as those associated with World Liberty Financial.
Unlike traditional political donations, which are subject to caps and disclosure requirements with the Federal Election Commission (FEC), these crypto transactions can theoretically be unlimited and anonymous. The report contends this creates a dangerous loophole, allowing entities to funnel capital directly to ventures that benefit the President personally, all while bypassing established campaign finance restrictions. Ranking Member Jamie Raskin stated, “Donald Trump has turned the Oval Office into the world’s most corrupt crypto startup operation,” highlighting how this new form of financial influence operates outside the bounds of existing oversight.
The Binance and Changpeng “CZ” Zhao Case Study
The report presents a detailed timeline involving Binance and its former CEO, Changpeng “CZ” Zhao, as a prime example of alleged “shadow lobbying.” According to the committee’s findings:
- In 2023, Binance agreed to a $4.3 billion settlement with the Department of Justice (DOJ), and Zhao stepped down as part of the plea deal.
- In the months following the settlement, the report alleges that Binance-linked entities provided promotional support and capital to World Liberty Financial.
- On October 23, President Trump issued a full pardon to Zhao.
The report draws a direct correlation between this support for the Trump family venture and the subsequent grant of executive clemency. It describes this pattern as one where “bad actors” who support the President’s crypto endeavors receive relief from federal penalties, suggesting a quid pro quo arrangement facilitated through the crypto ecosystem.
Systemic Regulatory Dismantling and Selective Enforcement
Beyond individual cases, the report alleges a systematic dismantling of regulatory frameworks designed to protect the digital asset market. A key finding is the dissolution of the DOJ’s National Cryptocurrency Enforcement Team (NCET), a unit established specifically to prosecute criminal activity in the crypto space.
Furthermore, the document claims the Administration intervened to halt or terminate investigations into several major cryptocurrency firms, including Coinbase, Kraken, Ripple, and Gemini. The report notes that these firms or their executives have been significant donors or supporters of the President’s political and business endeavors. This alleged pattern of selective enforcement creates an environment where entities supporting the President’s ventures may operate with impunity, eroding regulatory integrity.
Market Manipulation Through Federal Policy
The committee also examines the market impact of specific federal policies. It highlights the Administration’s “crypto-strategic reserve” policy, noting that the decision to include specific tokens like Solana (SOL) and Ripple (XRP) in the Federal Reserve led to immediate and significant price appreciations of 25% and 33%, respectively.
The report argues that by selecting specific assets for state backing, the Administration effectively manipulated market valuations to benefit donors and supporters who hold large positions in those particular tokens. This use of public policy to directly influence asset prices for the benefit of political allies represents a new frontier in allegations of financial misconduct.
National Security Implications: The MGX and G42 Allegations
The scope of the report extends beyond domestic finance into national security. It details an alleged transaction involving MGX, a UAE-based investment firm, and G42, a technology holding company.
According to the report:
- MGX invested billions into Binance—capital that allegedly indirectly supported the Trump crypto ecosystem.
- Simultaneously, White House officials, including World Liberty Financial co-founder Steve Witkoff, negotiated to provide G42 with access to advanced American-made artificial intelligence (AI) chips.
The committee asserts this arrangement proceeded despite objections from the National Security Council (NSC) regarding potential technology diversion to China. The report states that six NSC staff members were fired after expressing concerns about the deal, suggesting that national security protocols were subordinated to financial interests linked to the President’s crypto empire.
The Legislative Gap: Why Current Laws Are Obsolete
A critical conclusion of the report is its identification of “severe weaknesses” in current U.S. law. It argues that foundational statutes like the Foreign Agents Registration Act (FARA) and domestic bribery laws are predicated on traditional financial instruments and do not adequately cover decentralized digital assets.
The pseudonymous and borderless nature of cryptocurrency creates a new channel of influence that is technically legal but ethically compromising under existing frameworks. The committee warns that without legislative reform specifically targeting these new asset classes and transaction methods, such loopholes will continue to be exploited, fundamentally challenging governmental accountability and integrity.
Conclusion: A Call for Reform in a New Financial Era
The House Judiciary Committee staff report paints a picture of a governance model transformed by digital assets, where policy, finance, and political influence are fused in unprecedented ways. The allegations—spanning from shadow lobbying and regulatory capture to national security compromises—suggest that cryptocurrency has created novel vulnerabilities in the U.S. political system.
For participants in crypto markets—from developers to investors—this report serves as a stark reminder that regulatory scrutiny is inevitable. The call for legislative reform by Ranking Member Raskin signals a coming battle over how digital assets are integrated into existing legal and ethical frameworks. The core tension highlighted is between innovation and accountability; as crypto continues to mature, its intersection with political power will demand greater transparency and robust legal structures to prevent abuse.
Moving forward, readers should monitor congressional efforts to draft new legislation addressing these identified loopholes. The response from regulatory bodies like the SEC and DOJ to these allegations will also be critical. Ultimately, this report is more than a political indictment; it is a case study in how emerging technologies can challenge foundational principles of democratic governance, setting the stage for a defining regulatory clash in the years to come.
Mentioned in this article: Donald Trump, Jamie Raskin, World Liberty Financial (WLF), TRUMP (memecoin), Binance, Changpeng “CZ” Zhao, Coinbase, Kraken, Ripple (XRP), Gemini, Solana (SOL), MGX, G42, Steve Witkoff.