Democratic lawmakers in the U.S. have sent a letter to the Treasury Department demanding access to suspicious activity reports (SARs) related to several crypto projects backed by Trump as part of their ongoing investigation into his digital ventures.
In May. 14 letter, Representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin asked Treasury Secretary Scott Bessent to hand over any suspicious activity reports (SARs) filed since 2023 that involve World Liberty Financial or the Official Trump Token.
Financial institutions in the U.S. have to file Suspicious Activity Reports (SARs) with the Financial Crimes Enforcement Network, a part of the Department of the Treasury, whenever they spot activity that seems suspicious, like possible fraud or money laundering.
Lawmakers demand SARs on Trump tokens
The broad investigation is seeking any SARs that mention WinRed, Elon Musk, Liberty Financial (WLF), political action committees (PACs), America PAC, Trump, Melania, World, or Justin Sun, with a deadline of May. 30.
Democratic lawmakers say they are investigating whether the U.S. needs new laws to prevent violations of campaign finance, consumer protection, bribery, securities fraud, and other anti-corruption rules. They also need to protect against financial misconduct involving current or future federal officials.
The lawmakers say foreign actors could use WLF to push influence because it sold part of its tokens to foreign investors, who typically face less strict regulations than U.S. investors.
Lawmakers raise flags over Trump Token & WLF
Justin Sun’s investment in WLF and the SEC’s decision to pause its lawsuit accusing him of securities law violations have also raised concerns.
Trump’s token has faced criticism because lawmakers argue in their letter that the identities of the coin buyers aren’t publicly revealed. This could allow bad actors to try to win favor with Trump by purchasing the coin.
Meanwhile, SARS related to Republican digital fundraising platform WinRed, Elon Musk’s super PAC that donated $250 million to Trump’s campaign, and two other PACs.
