Chinese Billionaire Justin Sun’s $30 Million Investment in Trump’s Crypto Venture Raises Concerns
A $30 million investment from Chinese entrepreneur Justin Sun into Donald Trump’s cryptocurrency venture, World Liberty Financial, has stirred controversy. The investment could result in a significant financial windfall for a company linked to the president-elect.
The sudden influx of funds has raised questions regarding the potential influence of foreign investments on Trump’s policies, especially as he vowed during his presidential campaign to make the U.S. the “crypto capital of the planet.”
Justin Sun, a cryptocurrency mogul known for his eccentric spending habits—including purchasing a $6 million banana art piece—became the largest investor in World Liberty Financial, a company backed by Trump. The infusion of capital triggered a provision that grants Trump’s affiliated entity, DT Marks DEFI LLC, 75% of the company’s net revenue. This provision could result in a payday exceeding $15 million for Trump’s affiliate company, stoking concerns about potential conflicts of interest regarding his stance on cryptocurrency, especially with the ongoing Securities and Exchange Commission (SEC) lawsuit against Sun for alleged investor fraud. Sun and his companies deny the allegations.
“It’s hard to have more influence when you talk about someone directly giving you eight figures in money,” said Jordan Libowitz, vice president of the progressive watchdog group Citizens for Responsibility and Ethics in Washington.
This development coincides with Trump’s recent appointments of pro-crypto figures, such as Paul Atkins, a former regulator, to lead the SEC, and David Sachs, a Silicon Valley venture capitalist, as White House AI and crypto czar. Trump has denied any wrongdoing or profit from his presidency, stating that he removed himself from his real estate empire to serve the country.
Despite previous criticism of cryptocurrencies, Trump expressed support for World Liberty Financial in September, describing the platform as crucial for America’s crypto future. World Liberty Financial is a decentralized finance platform that aims to be a marketplace for borrowing and lending cryptocurrencies. The company generates revenue by selling tokens, which provide investors a say in its governance but not a share of its profits.
Although Trump is not an officer of the company, his affiliated entity, DT Marks DEFI LLC, is entitled to a substantial portion of the revenue if the venture succeeds. Ethics experts have raised concerns that the company might serve as a vehicle for funneling money to Trump, with Robert Weissman of Public Citizen describing the arrangement as “fundamentally corrupt.”
Despite a rocky start for World Liberty Financial, which faced criticism for an unclear business plan, Sun’s investment has revitalized the project. Sun, the founder of the Tron cryptocurrency, made his $30 million investment through Tron, making him the largest investor and an official adviser to the company.
The investment could be highly lucrative for Sun, especially with the rise of cryptocurrencies like Bitcoin, which recently surpassed $100,000 per share. However, experts argue that Trump’s association with the venture could blur the lines between private business interests and public policy, raising ethical concerns.
Trump’s name and likeness are prominently featured in World Liberty Financial’s marketing, and he is listed as the company’s “chief crypto advocate,” though neither he nor his family members are official officers. The company claims to be inspired by Trump and hopes to introduce cryptocurrency to a wider audience.
Critics argue that the investment and potential profits could influence Trump’s future policies on cryptocurrency, particularly in relation to the SEC’s ongoing litigation against Sun. “If you face charges from the SEC, putting money in the hands of a future president is a smart move to influence the decisions of regulators,” said Libowitz.
Steve Witkoff, Trump’s longtime associate and a co-founder of World Liberty Financial, told ABC News that Trump would likely place his assets in a trust, as he did during his first presidency, to avoid conflicts of interest. However, experts contend that this arrangement may not fully resolve concerns, as Trump could still profit from the venture.
“Unless Trump completely divests from these investments, he still stands to profit,” said Scott Amey of the Project on Government Oversight.
This ongoing situation underscores the complex intersection of politics, business, and cryptocurrency, and raises important ethical questions as Trump’s crypto venture continues to unfold.
