SEC Faces Scrutiny Over Lack of Investigation into Trump-Linked Crypto Venture
The U.S. Securities and Exchange Commission (SEC) is facing scrutiny for allegedly not investigating AI Financial Corporation, a public company linked to the Trump family's crypto venture, World Liberty Financial.
A Freedom of Information Act response obtained by POGO Investigates found no records of an investigation into AI Financial over the previous year. This raises concerns about potential conflicts of interest and whether the SEC is giving preferential treatment to politically connected crypto projects.
The deal between AI Financial and World Liberty was worth $717 million, with World Liberty receiving 100 million shares in exchange for $750 million worth of tokens. The Trump family's take from this arrangement has been estimated at around $500 million, with 75% of the token-sale proceeds flowing to a Trump-owned entity.
Legal experts have expressed alarm over the lack of investigation by the SEC, with some questioning whether there are 'political reasons' for not pursuing the matter. Howard A. Fischer, former senior SEC trial counsel, described the situation as 'the paradigmatic securities fraud case.'