RiskReversal principal and RiskReversal Media co-founder Dan Nathan said on CNBC Wednesday that U.S. President Donald Trump’s crypto ventures are akin to a “Ponzi scheme.”
When asked by “The 11th Hour” host Stephanie Ruhle about the ethics tied to the Trump-affiliated crypto platform World Liberty Financial, Nathan didn’t hold back.
“The big concern there is that this is like the perfect Ponzi scheme, if you will,” Nathan said. “You can’t really track a whole heck of a lot that goes on there, despite it being on a blockchain.”
“Obviously, the more money that goes into it, the better it is for the Trump Organization,” he added.
Trump’s Connections To Crypto Face Scrutiny
Critics of Trump’s ties to the crypto industry widely argue that the lack of digital asset oversight may leave the door open for certain foreign governments to buy favor with the current U.S. president.
In January, Trump and his wife, Melania, launched namesake memecoins, drawing scrutiny from the public over potential conflicts of interest ahead of his potential second term in the Oval Office.
Most recently, Trump’s memecoin, $TRUMP, announced that the top 220 holders of the cryptocurrency will be invited to attend an exclusive dinner at Trump National Golf Club in Washington, D.C. on May 22.
The top 25 investors will also be eligible to attend an “exclusive reception” alongside Trump ahead of the dinner, which includes a “special VIP tour” for attendees.
Democratic senators Elizabeth Warren and Adam Schiff have since called on Jamieson Greer, the acting director of the U.S. Office of Government Ethics, to launch an “urgent inquiry” into the event.
“The American people deserve the unwavering assurance that access to the presidency is not being offered for sale to the highest bidder in exchange for the President’s own financial gain,” the U.S. lawmakers said in an April 25 letter.
Given that Trump is in one of the country’s highest positions of power, it’s still unclear whether these concerns will be fully explored.
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