On the eve of the midterm elections, Trump-affiliated cryptocurrency companies urgently built a legal defense line

Authors: Annie Massa, Olga Kharif, Bloomberg

Compiled by: Luffy, Foresight News

Companies linked to President Donald Trump and his family are recruiting lawyers and lobbyists as Democrats threaten to launch a comprehensive investigation if they win either chamber of Congress in the midterm elections.

Multiple insiders have revealed that polls and prediction markets are leaning toward the Democrats. These companies tied to the Trump family, covering crypto projects, venture capital firms, and prediction market tracks, are already preparing for congressional inquiries.

Companies and individuals associated with the Trump family, including prediction markets like Polymarket and Kalshi, rare earth manufacturer Vulcan Elements Inc., and cryptocurrency leader Zhao Changpeng, who received a presidential pardon, have begun hiring prominent lobbyists and lawyers—some of whom have close ties to Democratic lawmakers—to respond to the anticipated public relations storm.

President Donald Trump speaks to reporters on the South Lawn of the White House

Trump and his family insist that all their business dealings are completely legal. However, the high salaries being paid to legal and lobbying teams indicate that the boards of these companies are actively preparing for the inquiries. Democratic lawmakers have previously stated their intention to focus on investigating profitable transactions between government policies and the president's personal business interests.

Sean Clerget, a senior partner at the Kozan O'Connor law firm, which specializes in consulting clients on congressional investigations, stated, "These companies have begun assessing their risks, thinking ahead about how to handle inquiries, and refining their public statements and response plans. Democrats have made it very clear how they wish to scrutinize business projects involving government officials and their families."

The Democrats have already targeted a number of Trump family-related businesses for investigation: they have sent requests for information to World Liberty Financial, a crypto platform co-founded by Trump and his son, and to 1789 Capital, a venture capital firm where Donald Trump Jr. is a partner, while also focusing on companies within the 1789 Capital portfolio, including Vulcan. The Democrats have also reached out to the Department of Justice to inquire about the details of Zhao Changpeng's pardon. Binance had assisted a company partially owned by the president in developing a stablecoin. A Binance spokesperson stated that the company only provided standard services such as onboarding to World Liberty, which are also offered to many other projects.

Democratic Senator Richard Blumenthal of the Senate Judiciary Committee said, "We will scrutinize any projects and business arrangements that raise suspicions of illegal activity or conflicts of interest."

Investigations May Face Multiple Obstacles

The current focus of the Democrats' inquiries is to determine whether businesses within Trump's inner circle have received special government contracts or policy advantages. Democratic Congressman Suhas Subramanyam of the House Ethics Committee stated that if the Democrats secure a majority and gain subpoena power, they will deeply investigate transactions with solid evidence of misconduct.

However, such investigations are unlikely to proceed smoothly. Some documents are stored overseas: World Liberty Financial received a $500 million investment from an entity funded by Sheikh Tahnoon bin Zayed Al Nahyan of the Abu Dhabi royal family, a deal that has already been highlighted by the Democrats. Congressional power is limited, making it difficult to compel overseas individuals to appear or submit materials.

Sheikh Tahnoon bin Zayed Al Nahyan, who controls the well-known investment fund MGX

Moreover, the investigation may ultimately fail to uncover any violations. All companies associated with Trump claim that their partnerships and business models comply with legal requirements. Democratic Senator Ron Wyden initiated a conflict of interest investigation into Jared Kushner's $6 billion private equity firm Affinity Partners as early as 2024, but no criminal or civil charges were ever filed.

Many legal experts believe that the Department of Justice, having complied with Trump's personal wishes during his second term, is unlikely to prosecute his business allies. After years of investigation, Trump and his family are well aware that the president has extensive legal protections and pardon powers. Noelle Acheson, a contributor to the blog "Crypto is Macro Now," stated, "Even if the Democrats take both chambers, they cannot eliminate the current obstacles preventing the Department of Justice, the Treasury, and the SEC from initiating investigations."

Insiders have revealed that Donald Trump Jr. is not worried about the congressional investigation in private conversations; he believes that the Democrats' attacks may actually boost his support. A spokesperson for Donald Trump Jr. declined to comment, and Eric Trump's representative did not respond to interview requests. Trump's two sons have publicly stated that as ordinary citizens, they have the right to serve as business advisors and participate in investments.

White House spokesperson Lauren Bis stated in a statement, "The Democrats have no plans to improve people's lives; their only goal is to continue the political persecution of President Trump that has lasted for a decade."

"The Core Purpose is to Annoy the Opponent"

However, the Democrats are likely to focus on contrasting themselves with Trump in the 2028 presidential campaign. Aaron Cutler, head of government relations and public affairs at the law firm Hogan Lovells, believes that the investigation itself has political motives. "For this group of Democratic lawmakers, the ultimate goal is to provoke and annoy Trump, creating trouble for those around him."

Congressional investigations must nominally serve legislative purposes; otherwise, they risk being accused of using taxpayer money for partisan battles. However, most Democrats believe that bringing to light the numerous facts of the president profiting from his power can create a stark contrast with ordinary voters struggling to make ends meet. New Mexico Congresswoman Melanie Stansbury stated, "There is no division among Democrats on this issue; everyone wants to stop misconduct and hold this administration accountable."

The following Trump family-related businesses have already come under scrutiny, with many expanding their legal and lobbying teams ahead of the midterm elections:

World Liberty Financial

World Liberty Financial was the primary source of Trump's crypto asset income last year. The platform was co-founded by Trump and his two sons, along with presidential envoy Steve Witkoff and his family, just months before the 2024 election. According to property disclosures, the project generated $594 million in income for Trump in just one year.

The project launched two tokens: WLFI and the dollar-pegged stablecoin USD1, both of which can generate revenue for the Trump family. An entity associated with the Trump family holds approximately 38% of the parent company of World Liberty, with 75% of the proceeds from WLFI token sales going to that entity.

The project received strong support from Middle Eastern capital in its first year, boosting the popularity of the tokens and increasing the Trump family's revenue. On the eve of Trump's inauguration, an investment entity backed by UAE National Security Advisor Sheikh Tahnoon invested $500 million to acquire a 49% stake in World Liberty, a story first reported by The Wall Street Journal. Subsequently, the UAE fund MGX, chaired by Sheikh Tahnoon, invested $2 billion in Binance using USD1. The typical profit model for stablecoin issuers is to invest user funds in low-risk assets like government bonds to earn interest. This deal directly propelled USD1 into the ranks of leading stablecoins.

Binance stated in a statement that MGX independently set its business standards and chose USD1 as the settlement currency for its investment in Binance, and Binance was not involved in that decision.

Other overseas capital also participated in the investment, further boosting project revenues. Crypto investor Justin Sun claimed in a lawsuit against World Liberty that he purchased $45 million worth of WLFI.

The project is still expanding, having received preliminary conditional approval from a trust bank this year. If it obtains a full license, World Liberty can directly issue USD1; currently, USD1 is issued by BitGo, which manages the reserves.

World Liberty spokesperson David Wachsman stated, "Since our establishment, we have complied with all U.S. laws and regulations. We proactively applied to the OCC for a banking license, and once the license is granted, regardless of which party is in power, the company will continue to be subject to federal oversight. It is perplexing that Congress is targeting a compliant business without basis. This company is committed to expanding the channels for using the dollar, while there are many pressing issues in the U.S. that need to be addressed."

The company has recruited talent from industry giants like Coinbase, Robinhood, and Hidden Road. In August of this year, Mack McCain was promoted to Chief Legal and Administrative Officer; he previously served as Deputy General Counsel for Regulatory Affairs at Robinhood.

Project partners are also ramping up their lobbying efforts. BitGo hired the law firm Squire Patton Boggs for the first time in July, and that same month, the firm hired Giancarlo Pellegrini to lead congressional oversight efforts; he previously worked for California Democratic Congressman Robert Garcia.

Binance and Zhao Changpeng

The world's largest cryptocurrency exchange, Binance, was a key player in the launch of the USD1 stablecoin. When MGX initially invested in Binance using USD1, the stablecoin had been in existence for less than two months and had a low market value. Binance also promoted USD1 to platform users and did not take a cut from this stablecoin business. In contrast, Circle is required to pay Binance monthly fees linked to the USDC platform's outstanding balance, and Binance itself invested in Circle in September.

Former Binance CEO and largest shareholder Zhao Changpeng pleaded guilty, admitting to failing to implement anti-money laundering controls, and subsequently received a pardon from Trump. Binance paid over $4 billion in fines, and Zhao Changpeng served four months in a U.S. prison.

Zhao Changpeng, founder of Binance

Bloomberg reported that federal agencies are investigating whether Binance violated sanctions-related regulations, and the Department of Justice's investigation may not necessarily lead to charges. The Department of Justice is also reviewing whether Binance violated the settlement agreement reached with the U.S. government in 2023.

Earlier this year, Zhao Changpeng hired the public relations lobbying firm Tiger Hill Partners. The company's co-founder, Milan Dalal, previously worked for Democratic Senator Mark Warner's team and was also a staff member for the Senate Banking Committee. Sources revealed that Zhao Changpeng privately hoped to reverse the public's evaluation of his recent pardon and was very concerned about the binding relationship between Binance and World Liberty Financial. Zhao Changpeng's spokesperson declined to comment.

1789 Capital

Donald Trump Jr. joined the venture capital firm 1789 Capital, which focuses on an "anti-woke" philosophy, after Trump's re-election in November 2024. The firm was co-founded by former Bank of America executive Omeed Malik. Bloomberg previously reported that before Trump returned to the White House, 1789 Capital had raised about $200 million. Filing documents show that this year it manages assets totaling $3 billion, with investments covering sectors such as AI, prediction markets, and defense technology. A spokesperson for the firm stated that Donald Trump Jr. is not on the investment committee, which consists of Omeed Malik, co-founder Chris Buskirk, and partner Paul Abrahimzadeh.

Omeed Malik, founder of 1789 Capital

The investment portfolio of 1789 Capital has caught the attention of the Democratic Party. Senior Democratic member of the House Judiciary Committee Jamie Raskin sent a letter in August requesting details about the invitation for Donald Trump Jr. to join, as well as records of interactions with government officials, focusing on two investments: the defense company Anduril Industries Inc. and the rare earth supplier Vulcan. Vulcan received a loan from the Department of Defense, which occurred after 1789 Capital's investment.

The attorney for 1789 Capital responded, stating that the letter contained factual errors and distorted facts: "1789 Capital is willing to accept legitimate congressional oversight but will not become a tool for partisan political games." A spokesperson for the firm responded during an interview that the related reports did not provide any evidence of violations, only false accusations.

Sources revealed that Vulcan Elements hired Marcus Childress, co-head of congressional investigations at Akin Gump law firm. After May of this year, Squire Patton Boggs and Invariant also registered to provide lobbying services for this rare earth supplier.

A spokesperson for Vulcan stated: "The company insists on compliant operations and conducts business with integrity, and has never asked investors to help push for the Department of Defense loan announced in November 2025. We have maintained positive communication with Congress over the years and will continue to do so."

Polymarket and Kalshi

Polymarket and Kalshi, two major prediction markets, allow users to bet on sports, politics, and various events, becoming controversial focal points during Trump's second term. Regulatory agencies in multiple states have deemed them illegal gambling platforms, and both platforms have ties to the Trump family. 1789 Capital led the recent funding round for Polymarket, which has a post-investment valuation of $21 billion.

Donald Trump Jr. also serves as an advisor to Kalshi. Kalshi is negotiating with various states and regulatory agencies, which believe it needs a state license to conduct sports betting; Kalshi argues that it is subject to federal regulation, and this dispute will likely be decided by the Supreme Court.

On September 10, 2026, the day after the Republican National Convention held at the American Airlines Center in Dallas, Texas, Donald Trump Jr. delivered a speech on stage.

Filing documents show that Kalshi hired the FTP team in July, which includes several lobbyists with Democratic backgrounds; Polymarket hired Rob Eskridge in September, who previously worked for Texas Democratic Congressman Al Green. Spokespersons for both platforms declined to comment.

Trump Media & Technology Group

Trump Media & Technology Group is the parent company of Truth Social and has recently been expanding its business, even negotiating a merger with a fusion company. One of the most controversial businesses is selling high-speed information flow interfaces for Trump’s accounts to Wall Street firms. Trump frequently posts market-influencing news on Truth Social, involving major policies such as the situation in Iran and tariffs.

Democratic Congressman Warner has called on financial institutions not to purchase this service, which can cost up to $100,000 per month. As of August, more than ten institutions had signed contracts. Bloomberg contacted the company, but they did not respond. Even though the number of clients is not large, this service, named Truth API, can generate millions in revenue each year, while the company itself continues to operate at a loss. Trump himself, through a trust managed by Donald Trump Jr., is the largest shareholder of the company, with this holding valued at about $1 billion in the Bloomberg Billionaires Index.

Two media companies have sued Trump, requesting a New York court to halt this business, claiming that the service "crosses the line, is corrupt, and violates the Constitution."

Meme Coin TRUMP

The meme coin TRUMP was launched by Fight Fight Fight just days before Trump's inauguration, with the operator's head being Bill Zanker, who has long collaborated with Trump. The project's official website shows that Fight Fight Fight allocated 80% of the tokens to Trump's affiliated entity CIC Digital LLC, with the tokens unlocking over three years. At current prices, the tokens held by the two entities are worth a total of $1.49 billion. CIC Digital and Fight Fight Fight can also share in the transaction fees of this meme coin. According to asset declarations, Trump earned $636 million in related income just last year.

Trump frequently attends offline dinners for major holders of this meme coin, with the next dinner scheduled for November 22 at Trump National Golf Club. The event attracts many overseas investors, including Justin Sun, who previously purchased World Liberty Financial tokens and attended the last TRUMP dinner, but later had conflicts with World Liberty.

Last year, Senator Richard Blumenthal sent a letter regarding the TRUMP meme coin, requesting Fight Fight Fight to submit equity and investor information.

American Ventures

Donald Trump Jr. and Eric Trump invested in an investment firm called American Ventures, focusing on several publicly listed companies, particularly in sectors like defense and critical minerals that can receive government support. Securities documents show that the two were involved in transactions related to a tungsten mine in Kazakhstan. The project entity Cove Kaz Capital Group stated that the Export-Import Bank of the United States has expressed preliminary interest in providing up to $900 million in financing for this large undeveloped tungsten mine project in Kazakhstan.

On August 8, 2026, during the third day of the LIV Golf New York event held at Trump National Golf Club in Bedminster, New Jersey, Eric Trump is observing the game.

American Ventures also invested in a golf operations company, which later announced a merger with a drone manufacturer, boosting its stock price. The drone company, named Powerus, received a $82 million government anti-drone order. American Ventures was established by the investment bank Dominari Holdings Inc., and both Donald Trump Jr. and Eric Trump hold minority stakes in this investment bank. A spokesperson for Dominari did not respond to interview requests.