Key Points
- An SEC investigation into Crypto.com was dropped months after Donald Trump won the 2024 election.
- After the election, the company donated $11 million to pro-Trump political groups and hired a lobbyist close to him.
- Crypto.com then entered into a business deal worth roughly $1 billion with Trump’s social media company.
- The deal’s terms appear highly favorable to Trump Media, which contributes little cash but gets a major stake.
For over a year, the crypto firm Crypto.com has been under investigation by federal regulators. But after Donald Trump won the 2024 election, the company’s legal problems disappeared. Now, in a move that ethics experts are calling a major conflict of interest, Crypto.com has become a business partner with the president’s own social media company.
The journey from investigative target to business partner has raised “pay-to-play” concerns. Following Trump’s victory, Crypto.com donated $11 million to pro-Trump political committees and ramped up its spending on a lobbyist with close ties to the president.
Within months, the Securities and Exchange Commission (SEC) dropped its investigation. Crypto.com denies any connection between its political activities and the favorable outcome.
Shortly after, the company announced a major venture with Trump Media, which has since lost hundreds of millions of dollars. Under the deal, Crypto.com is committing roughly $1 billion in assets to a new partnership. In exchange for licensing its brand, Trump Media is contributing little cash but will receive a substantial ownership stake.
Watchdogs say the situation creates a clear perception that companies can secure favorable treatment from the government by providing financial benefits to the president’s businesses.
“When you consider the investigation… was dropped, the economics of this look more like a plea deal than a business deal,” said one former SEC official. The White House maintains that the president has taken proper steps to avoid conflicts of interest.
