WASHINGTON (AP) 鈥� President Donald Trump rewarded top investors in one of his cryptocurrency projects with a swanky dinner on Thursday night, an event that showed the ascendance of an emerging financial industry 鈥� and also the president's willingness to mix public office with personal profit.
Some 220 of the biggest investors in the $TRUMP were invited to Trump's luxury golf club in Northern Virginia, where they dined on filet mignon and halibut. According to participants' posts on social media, Trump spoke for about half an hour before dancing to the song 鈥淵MCA.鈥�
Despite the White House insisting that Trump would be attending the event 鈥渋n his personal time,鈥� he stood behind a lectern with the presidential seal as he touted an industry that's generating profits for his family business.
After feeling unfairly targeted under President Joe Biden, the crypto industry has quickly become a powerful political force, donating huge sums to help Trump and friendly lawmakers. The U.S. Senate is key pro-crypto legislation while .
However, even some pro-Trump crypto enthusiasts worry that the president's personal involvement may be undermining their efforts to establish credibility and stability for the industry.
鈥淚t鈥檚 distasteful and an unnecessary distraction,鈥� said Nic Carter, a Trump supporter and partner at the crypto investment firm Castle Island Ventures, who said the president is 鈥渉ugging us to death鈥� with his private crypto businesses. 鈥淲e would much rather that he passes common sense legislation and leave it at that.鈥�
As the president uses crypto as a platform to make money for his brand in unprecedented ways, it's also creating an opportunity for potentially shadowy buyers to use the anonymity of the internet to buy access to the president. The lack of transparency was evident on a poster board at the dinner, where participants signed a ranking of top investors. Some used their real names; others used pseudonyms.
No media was allowed into the dinner, and the president was at his golf club for only about an hour. Protesters gathered outside the club holding signs that said 鈥渟top crypto corruption鈥� and 鈥渘o corrupt fools.鈥�
Trump said the event was 鈥済ood, very good鈥� as he returned to the White House.
Concerns about Trump鈥檚 crypto ventures predate Inauguration Day
Three days before Trump took office on Jan. 20, he announced the creation of the $TRUMP meme coin at the fancy Crypto Ball held down the street from the White House. He described it as a way for his supporters to 鈥渉ave fun.鈥�
Meme coins are the crypto sector鈥檚 black sheep. They are often created as a joke, with no real utility and prone to extremely wild price swings that tend to enrich a small group of insiders at the expense of less sophisticated investors.
The president's meme coin is different, however, and has a clear utility: access to Trump. In addition to Thursday's dinner, the top 25 were invited to a private reception with the president, with the top four getting $100,000 crypto-themed and Trump-branded watches.
Trump鈥檚 meme coin saw an initial spike in value, followed by a steep drop. Its creators, which include an entity controlled by the , have made hundreds of millions of dollars by collecting fees on trades.
First lady has her own meme coin, and Trump鈥檚 sons, Eric and Don Jr. 鈥� who are running the Trump Organization while their father is president 鈥� announced they are partnering with an existing firm to create a crypto mining company.
The Trump family also holds about a 60% stake in , a crypto project that provides yet another avenue where investors are buying in and enriching the president鈥檚 relatives. World Liberty has launched its own stablecoin, USD1. The project got a boost recently when World Liberty announced an investment fund in the United Arab Emirates would be using $2 billion worth of USD1 to purchase a stake in Binance, the world鈥檚 largest cryptocurrency exchange.
Stablecoins have values pegged to fixed assets like the U.S. dollar. Issuers profit by collecting the interest on the Treasury bonds and other assets used to back the stablecoins.
Crypto is now one of the most significant sources of the Trump family鈥檚 wealth.
鈥淗e鈥檚 becoming a salesman-in-chief,鈥� said James Thurber, an American University professor emeritus who has long studied and taught about corruption around the world. 鈥淚t allows for huge conflicts of interest.鈥�
How Trump changed his mind on crypto
鈥淚鈥檓 a big crypto fan,鈥� Trump told reporters aboard Air Force One during last week鈥檚 . 鈥淚鈥檝e been that from the beginning, right from the campaign.鈥�
That wasn鈥檛 always true. During his first term, Trump posted in July 2019 that cryptocurrencies were 鈥渘ot money鈥� and had value that was 鈥渉ighly volatile and based on thin air.鈥�
鈥淯nregulated Crypto Assets can facilitate unlawful behavior, including drug trade,鈥� he added then. Even after leaving office in 2021, Trump told Fox Business Network that bitcoin, the world鈥檚 most popular cryptocurrency, 鈥渟eems like a scam.鈥�
Trump began to shift during a crypto event at his Mar-a-Lago club in Florida in May 2024, receiving assurances that industry backers would spend lavishly to get him reelected. Another major milestone came last June, when Trump attended a high-dollar fundraiser at the San Francisco home of .
Those close to Trump, including his sons and billionaire , helped further push his embrace of the industry. Sacks is now the Trump administration鈥檚 crypto czar, and many Cabinet members 鈥� including Commerce Secretary and Defense Secretary 鈥� have long been enthusiastic crypto boosters.
鈥淚 don鈥檛 have faith in the dollar,鈥� Transportation Secretary said in a 2023 . 鈥淚鈥檓 bullish on bitcoin.鈥�
Trump + crypto: A political marriage of convenience
Many top crypto backers were naturally wary of traditional politics, but gravitated toward Trump last year. They bristled at how Biden's Securities and Exchange Commission aggressively brought civil suits against several major crypto companies.
Since Trump took office, many such cases have been dropped or paused, including one alleging that Justin Sun, a China-born crypto entrepreneur, and his company engaged in market manipulation and for undisclosed promotions.
Sun, who once paid $6.2 million for a piece of art involving a banana taped to a wall, and then ate the banana, helped the Trumps start World Liberty Financial with an early $75 million investment.
Sun has on social media that he is the biggest holder of $TRUMP meme coins and is attending Thursday鈥檚 dinner.
鈥淚鈥檓 excited to connect with everyone, talk crypto, and discuss the future of our industry,鈥� Sun said in advance.
He posted a video of Trump entering the private reception.
鈥淒id you get to see the helicopter?鈥� Trump said.
鈥淵eah! Super cool,鈥� Sun responded.
Are Trump family profits hurting other crypto investors?
Trump has signed executive orders promoting the industry, including calls to create a . In March, Trump convened the first at the White House.
But some of the industry鈥檚 biggest names, often brash and outspoken, have kept mostly mum on Trump鈥檚 meme coins and other projects.
鈥淚t鈥檚 not my place to really comment on President Trump鈥檚 activity,鈥� Coinbase CEO Brian Armstrong said at a recent public event.
Meanwhile, a top legislative priority for crypto-backers, a bill clarifying how digital assets are to be regulated, has advanced in the Senate. But some Democrats have tried to stall other pro-crypto legislation over the president's personal dealings 鈥� and see the dinner as a particularly egregious case.
Sen. Richard Blumenthal, a Connecticut Democrat, said the gathering was 鈥渋n effect, putting a 鈥榝or sale鈥� sign on the White House.鈥�
鈥淚t鈥檚 auctioning off access,鈥� Blumenthal said on a Thursday press call.
White House press secretary Karoline Leavitt said the president is attending 鈥渋n his personal time.鈥� The White House has also said it has nothing to do with Trump's meme coin.
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Associated Press writer Chris Megerian in Washington contributed to this story.
Will Weissert And Alan Suderman, The Associated Press
