A new cryptocurrency venture associated with U.S. President-elect Donald Trump has reportedly partnered with a platform linked to controversial activities. This partnership has raised eyebrows due to the platform’s alleged connections with criminal groups.
What Happened: World Liberty Financial Inc, a crypto venture launched by Trump and billionaire Steve Witkoff, has teamed up with the Tron crypto platform, Reuters reported on Thursday.
The platform has been associated with groups designated as terrorist organizations, according to financial crime experts. Tron, noted for its speed and cost-effectiveness compared to Bitcoin BTC/USD has reportedly facilitated crypto transfers linked to such groups.
Last month, Tron announced a $30 million investment in World Liberty, with its founder, Justin Sun, joining as an advisor. Both Sun and World Liberty confirmed this partnership on social media platform X. Concerns have been raised by U.S. government ethics specialists about potential conflicts of interest, given Tron’s alleged use by militants and Sun’s ongoing investigation by the U.S. Securities and Exchange Commission.
Why It Matters: The partnership between Trump’s crypto venture and Tron comes at a time when the cryptocurrency industry is hopeful for improved relations with banks. Following Trump’s election victory, there is optimism that he could bridge the gap between cryptocurrency and traditional banking. Trump has promised to establish a national Bitcoin reserve and a regulatory council, which could potentially ease the banking challenges faced by the crypto sector.
Recently, World Liberty Financial purchased Ethereum ETH/USD worth $10 million on Wednesday.
Additionally, Trump’s potential appointment of Brian Quintenz as head of the Commodity Futures Trading Commission (CFTC) could further influence the regulatory landscape for digital assets. Quintenz, a prominent figure in digital assets, is reportedly a frontrunner for the role. These developments indicate a potential shift in U.S. crypto policy under Trump’s administration.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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