A $6.2 million banana, a crypto empire and Trump’s potential conflict

Shortly after purchasing and publicly consuming a $6.2 million banana as part of an artworld stunt, Chinese crypto entrepreneur Justin Sun followed suit by investing $30 million ($23.5 million) in a cryptocurrency firm called World Liberty Financial. Made another exciting purchase.

The company had been on a tear since its launch in October, but investors seemed concerned about its prospects and its terms.

But it boasted a potentially lucrative feature: a partnership with someone other than Donald Trump and the chance to do business with the promoted firm.

Mr. Sun’s investment brought the company to a point that allowed the newly elected president to begin turning a profit on the venture. Trump and his family are now in a position to collect about $20 million – and possibly even more.

Mr Sun, who is currently fighting fraud charges in the US related to his own crypto business, did not answer questions about what sparked his interest in the token, which cannot be traded.

But the episode has set off alarm bells among government ethics experts, who see it as a sign that Trump’s expanding business ventures are moving money his way to those hoping to influence US policy. Made easier than ever.

“The conflicts have grown substantially with the scope of his business empire,” said Richard Painter, who served as chief White House ethics counsel during the George W. Bush administration.

In a statement to the BBC, Trump’s team shrugged off the concerns.

Trump spokeswoman Carolyn Levitt said, “In his first term, President Trump recused himself from his billion-dollar real estate empire and withheld his government salary in order to run for office.”

“Unlike most politicians, President Trump didn’t get into politics for profit – he’s fighting because he loves the people of this country and wants to make America great again.”

But Trump has taken little action in response to concerns about the possibility or presence of corruption as he prepares to return to the White House.

Trump has faced questions about conflicts of interest before.

During his first term as President, the Trump International Hotel in Washington, DC became a symbol of the issue as a favorite place for lobbyists, foreign diplomats and aides to stay and spend.

Critics argued that the hotel created a way for Trump to indirectly profit from his office. He faced allegations and lawsuits alleging that he violated the U.S. Constitution’s ban on presidents receiving foreign emoluments or profiting from their office.

But experts said the growth of his business empire, which now includes a publicly traded social media company, a cryptocurrency firm and ties to a Saudi-backed golf league, makes it possible for any individual to move money more quietly and Makes. A very high amount.

“The scale has increased and the spontaneity has increased,” said Michael Ohlrogge, a law professor at New York University who has studied Trump media, which operates Truth Social and currently represents the bulk of Trump’s $6bn fortune. Does. “You can only book so many hotel rooms.”

For example, at Truth Social, Professor Ohlrogge said that a foreign government or business could buy advertising that would lead investors to believe that the company is gaining popularity, which could cause its stock price to rise.

Although Trump Media has a market cap of more than $7 billion, there has been little sign of such activity so far. The company reported less than $5 million in advertising sales this year.

But given the “increasing” influence of the stock market, Professor Ohlrogge said it would not need to spend much to potentially make significant gains for Trump, who owns more than half the company’s shares.

Nowhere is the entanglement between Trump’s business interests and his public duties more evident than in the crypto industry, where he has deepened his personal involvement while also promising to champion it while in the White House.

His plans include ideas like regulatory rollback and a national Bitcoin reserve, in which the government would store the cryptocurrency.

“One of the most important issues to be determined over the next few years is how crypto is regulated,” said Virginia Cantor, chief ethics counsel for the nonpartisan Citizens for Responsibility and Ethics in Washington. “Now, he is an active player in the crypto market. How it might be regulated (it might affect his personal assets), what kind of positions he takes.”

Nick Bhatia, founder of Bitcoin Layer, a company that advocates investing in Bitcoin, said it would be a mistake to dismiss Trump’s stance on crypto as motivated solely by his own financial interests.

“I don’t see these steps as motivated by self-interest – I see them as representing the voters,” he said.

But still, he added: “I think there’s probably a conflict of interest in that his pro-crypto stance would benefit his company.”

This week, Trump said he would nominate Paul Atkins, who has lobbied for the industry, to lead the Securities and Exchange Commission (SEC).

He is widely expected to scale back enforcement at the agency, which oversees publicly traded firms like Trump Media for issues such as fraud and insider trading. The SEC monitored the crackdown on the crypto industry under President Joe Biden.

Mr. Sun, a World Liberty Financial investor, was embroiled in SEC action last year when the agency accused him and his company of failing to properly register with the government when selling certain digital assets, among other charges Was.

Under new leadership, the agency may very well drop the case, said John Coffey, a Columbia Law School professor and expert on securities law.

He said, “Mr. Atkins’ key characteristic is that he doesn’t like enforcement and he wants to greatly limit the range of cases the SEC can bring.”

When announcing his investment last month, Mr. Sun did not mention the SEC’s complaint — which he has said lacks merit — but cited Trump’s views on crypto.

“America is becoming a blockchain hub, and the credit for Bitcoin goes to @realDonaldTrump!” He wrote on X. “TRON is committed to making America great again and leading innovation. Let’s go!”

There is little in US law that places limits on conflicts of interest – the President is not bound by the same rules that govern other government employees and Cabinet officials.

Although the US Constitution theoretically bars presidents from taking gifts from foreign governments while in office, the Supreme Court has already rejected two previous lawsuits from Trump’s first term that involved potential conflicts of interest.

Last summer, in a case involving Trump, she also ruled that presidents have broad immunity from criminal prosecution while in office.

In the past, Trump has argued that his time in the White House actually caused harm to his business, as partners worried about the controversies severed ties, and he faced investigations and lawsuits.

Trump, now preparing to enter the White House for a second time, has not yet unveiled an ethics plan, as is customary, and he has shown no plans to bow to such concerns.

He has vowed to maintain his stake in Trump Media, continue to sell Trump-branded merchandise and lend his name to ventures such as World Liberty Financial. His Mar-a-Lago club remains a place where wealthy people willing to pay for membership can gain access to the President without any transparency.

Ethics experts worry that Trump has opened a door that will be difficult to close again.

“Trump has got the message that he can do whatever he wants because he won,” Mr Painter said. “Future presidents will look at this and think, ‘We Whatever we want to do, we can do it.”