$2.5 Million Settlement for Trump-Linked Cryptocurrency Mining Company

American Bitcoin, the cryptocurrency mining company co-founded by Eric Trump and Donald Trump Jr., has reached a settlement with the Justice Department over allegations that it improperly obtained a pandemic relief loan.

The company agreed to pay $2.5 million to settle the allegations, which stem from Gryphon Digital Mining's receipt of a Paycheck Protection Program (PPP) loan worth $2.2 million in 2020. The Small Business Administration initially forgave the loan but later reconsidered and threatened to deny it.

The Justice Department issued a civil investigative demand, prompting Gryphon to argue why it believed it was eligible for the PPP loan. American Bitcoin inherited the dispute after merging with Gryphon last September.

The settlement exceeds the original loan amount, suggesting additional costs were added to the resolution. American Bitcoin shares closed up nearly 5% at $6.14 on Tuesday, continuing a series of gains after reporting record bitcoin production and mentioning the settlement in its earnings report.