Donald Trump and his family’s crypto venture has turned into a major political storm. For Trump Media, the bet on crypto turned into a loss-making machine.
Two weeks ago, AMBCrypto reported that Trump Media recorded a loss of $238 million in Q2. In fact, the company reported realized losses of over $318 million in early August .
Source: Bitcoin Treasuries
Now, while the company has recorded significant losses, it’s worth noting that those who’ve invested in Trump’s crypto ventures have bled even heavily.
Investors left with $4.7 billion loss
According to U.S consumer advocacy group Public Citizen, the Trump family’s crypto ventures have caused investors at least $4.7 billion in unrealized losses. It went on to add that the TRUMP memecoin accounted for the largest share with estimated losses of $3.2 billion.
In fact, about 1.6 million Solana wallets that purchased TRUMP now sit in unrealized losses. Additionally, Public Citizen found at least $1 billion in WLFI losses and about $450 million in unrealized Bitcoin losses.
Interestingly, while investors have suffered massive losses, Trump and his family have become richer from crypto, with figures of at least $1.4 billion in income from crypto businesses.
UAE Sheikh backs 49% stake in Trump’s WLFI bank
Despite rising losses, however, the Trump family has continued to work on its crypto ventures. Thanks to the same, foreign investors are piling up too. For instance, U.S media reported that WLFI’s planned bank is mostly invested by the UAE’s spymaster.
Sheikh Tahnoon bin Zayed al Nahyan, the UAE’s national security adviser, reportedly holds a 49% stake in WLTC Holdings.
Previously, Tahnoon and other investors invested $500 million into World Liberty in a deal that saw the Trump family get $263 million. The arrangements between Trump and the UAE Sheikh have drawn scrutiny since Tahnoon is a foreign government official.
At the same time, many politicians have opposed these moves, questioning the arrangements over conflict of interest. This, because the Trump administration approved sales to G42, a UAE state-backed AI company controlled by Tahnoon.
Conflict of interest concerns spark legislation battle
With Tahnoon and the Trump family seemingly working to cut deals for both sides, Democratic lawmakers have championed major legislation.
For starters, after the preliminary approval for a Trump-linked crypto bank, Democratic senators introduced a measure to block top government officials and families from owning and controlling banks.
Senator Elizabeth Warren called the WLFI bank approval the most brazen act of self-dealing the US financial system has ever seen.
The proposed act would ban officials from owning banks, fearing conflict of interest. Therefore, critics worry that OCC under Trump will not protect customers by pushing the Trump family to operate safely and soundly.
Additionally, Senator Adam Schiff has also introduced the COIN Act. The Curbing Officials Income and Non-disclosure (COIN) Act seeks to ban the President, his family members, and members of Congress from endorsing or issuing digital assets.
These measures aim to address conflict of interest among politicians and their leaders, while preserving U.S financial institutions.
Final Summary
- Trump family’s crypto ventures have caused investors at least $4.7 billion in unrealized losses.
- UAE’s national security adviser Sheikh Tahnoon reportedly holds a 49% stake in WLTC Holdings.
