Author: The Associated Press

Translated by: Deep Tide TechFlow

Deep Tide Overview: The Associated Press released a lengthy investigative report detailing the Trump family's cryptocurrency business landscape during his second term. From the governance token sale of World Liberty Financial to meme coins, the listing of American Bitcoin, and the $500 million investment from the UAE, along with the presidential pardon of Binance's founder, this report thoroughly analyzes how the president's family has transformed political power into unprecedented business profits within a "legal and compliant" framework. Forbes estimates Trump’s net worth has soared by 60% to $6.3 billion.

For decades, U.S. presidents have deliberately avoided any suspicion of "profiting from office."

After leaving office, Truman refused to use his name for any business projects. Nixon, worried that his brother might profit from his presidential status, even had his brother's phone tapped. Before entering the White House, George W. Bush emptied his personal stock holdings.

Trump took a different path.

This century-old family real estate company is undergoing its fastest overseas expansion since its founding, with each deal potentially impacting significant policies such as tariffs and military aid.

Under the leadership of Eric and Donald Jr., the Trump family has expanded its business into the cryptocurrency sector, generating billions of dollars in revenue, but this has raised a core question: have certain large investors gained preferential treatment from policymakers as a result?

The two brothers have also joined or invested in multiple companies intending to do business with the federal government. Last month, they acquired shares worth millions from a drone manufacturer. This company is bidding for Pentagon contracts and is also marketing products to Gulf countries that rely on U.S. military protection and have been attacked by Iran. And the top commander of the U.S. military is their father.

The White House and the Trump Organization deny any ethical issues. Donald Jr. said at a recent cryptocurrency conference when asked about this: "To be honest, I'm tired of these questions."

The issue of conflict of interest has existed since Trump's first campaign a decade ago, but several government ethics experts and historians believe that the quantity and nature of the conflicts have reached unprecedented levels since he entered his second term.

Princeton University presidential historian Julian Zelizer said: "I believe the boundaries between policy decisions, political considerations, and the interests of the Trump family have completely vanished now."

Surge in Overseas Transactions

During Trump's first term, the Trump Organization did not engage in any overseas transactions. A little over a year into his second term, eight deals have already been signed. On the surface, these transactions comply with the rules set by the Trump Organization itself: not doing business directly with foreign governments.

However, in authoritarian and single-party states, governments rarely "let go." Especially when the business belongs to an incumbent president.

In Qatar, one of the developers of a Trump golf club and villa project is a company owned by the Qatari government. In Vietnam, according to The New York Times, the government has evicted farmers from their land to make space for a Trump resort, with the deputy prime minister signing off on the contract during the ceremony. In Saudi Arabia, the planned "Trump Plaza" resort on the Red Sea coast is being constructed by a real estate developer closely related to the royal family.

Whether these transactions have influenced U.S. policy directions is almost impossible to confirm. But the fact is, these countries got what they wanted: Qatar gained access to advanced U.S. technology, Vietnam received tariff reductions, and Saudi Arabia obtained fighter jets.

The Trump Organization also got what it wanted: tens of millions of dollars in fees.

When asked about the aforementioned projects, the Trump Organization stated that it has not signed contracts with any government to date, asserting that their Saudi partner is a private company and their relationship with Qatar is a "cooperative relationship" rather than a "partnership," therefore not violating their own rules.

UAE, Cryptocurrency, and Binance

Another transaction that raised questions of conflict of interest was revealed by The Wall Street Journal in January, but was actually signed a year earlier.

A few days before the inauguration, the Trump family sold nearly half of World Liberty Financial for $500 million to a company associated with the UAE government, run by members of the Emirati royal family.

Another UAE government fund invested $2 billion in the offshore cryptocurrency exchange Binance using the stablecoin issued by World Liberty. The Trump-related company receiving these dollars can invest the funds in safe assets such as bonds or money market funds, earning tens of millions of dollars in interest annually.

Shortly thereafter, the Trump administration revoked restrictions imposed during the Biden era and approved the Emirati acquisition of advanced U.S. chips. Binance founder Changpeng Zhao (CZ) also received a presidential pardon from Trump, despite having previously pleaded guilty to failing to prevent criminals from using his platform to transfer funds related to child sexual abuse, drug trafficking, and terrorism.

Zhao's lawyer, Teresa Goody Guillen, denied that there was any connection between Binance's business dealings and the family’s pardon, stating, "Any suggestion that Binance or CZ has engaged in a quid pro quo or received preferential treatment is a blatant distortion of public records."

The White House responded to the pardon inquiries by stating that federal authorities' action against Zhao is part of "the Biden administration's crackdown on the cryptocurrency industry."

World Liberty denied any conflict of interest, claiming that the Emirati transaction is unrelated to the president's chip policy.

Cryptocurrency Business Brings Billions

World Liberty also generated an additional revenue stream for a newly established LLC of Trump's by selling "governance tokens." These tokens grant holders certain voting rights but do not include equity. Last year, token sales amounted to $2 billion. Through shareholding and a separate profit-sharing agreement, the Trump family profited hundreds of millions from it.

One of the big buyers was cryptocurrency billionaire Justin Sun. As a foreign citizen, he is legally barred from making political donations to U.S. politicians. However, between Trump's election and inauguration, Sun spent $75 million to purchase governance tokens.

In February of last year, a federal lawsuit against Sun for defrauding investors was paused and resolved last month with a $10 million fine.

There are also meme coins featuring Trump's image that went on sale just days before his inauguration.

Within four months of going live, these meme coins generated $320 million in revenue, according to blockchain tracking company Chainalysis, most of which flowed into Trump-related entities. This figure is more than double the income of the Trump Hotel in Washington, D.C. during Trump's first term.

Unlike those who influence the president through lobbying or campaign contributions, meme coin buyers can purchase anonymously. Sun is one of the few buyers who revealed his identity, spending $200 million on meme coins, thus earning the right to attend a dinner hosted by Trump for the largest buyers.

Another family cryptocurrency venture, American Bitcoin, went public last September, at which point Donald Jr. and Eric's paper wealth jumped to about $1 billion. A few months ago, Trump announced the establishment of a national Bitcoin reserve, pushing Bitcoin prices to an all-time high.

The Trump family's cryptocurrency business is not immune to market fluctuations. Prices for Bitcoin and other digital tokens have since fallen sharply. The stock price of American Bitcoin and the value of Trump's meme coins have both plummeted by 90% from their highs.

Last month, Trump announced he would dine again with the new major holders of the meme coins, causing a brief increase in prices before they fell again.

Columbia University historian Timothy Naftali said: "The constraints that existed during the first term now seem to have completely vanished. Do you want future presidents to throw open the doors to the highest bidders?"

Trump Feels Nobody Cares

The White House responded to the Associated Press's request for an interview by stating that Trump's actions "align with ethical standards," and any contrary suggestion is either "misinformed" or "malicious." The White House reiterated that Trump's assets are held in a trust managed by his children and that he "does not participate" in family business dealings.

Spokesperson Anna Kelly stated: "There is no conflict of interest."

The Trump Organization issued another statement asserting that it "fully complies with all applicable ethics and conflict of interest laws," adding that the claim that politics has made the Trump family wealthy is unfounded.

Trump said in January to The New York Times: "I find that nobody cares, and I'm allowed to do this." He was referring to the presidential exemption from federal regulations prohibiting federal officials from holding business interests affected by their policies.

He may not be wrong, but American attitudes seem to be shifting, even among Republican voters. A Pew Research Center poll from January found that 42% of Republican voters trusted Trump's ethical conduct during his presidency, down from 55% a year ago at the start of his second term.

Wealth Reversal

Forbes estimates Trump's current net worth at $6.3 billion, a 60% increase since before he returned to the White House. Given the challenges faced by the Trump Organization previously, this increase is striking.

The Trump International Hotel in Washington had never turned a profit before its sale. Two Trump hotel brands that targeted middle-class travelers closed due to insufficient demand during his first term. Multiple condominium buildings removed the name "Trump" after discovering that the "Trump" brand not only failed to attract buyers but deterred them.

During his second term, no new U.S. condominium projects bear Trump's name, but in Washington, a city filled with federal government affairs, that name is worth its weight in gold.

Trump's eldest son Donald Jr. opened a private club in Georgetown, Washington, with founding membership fees reaching $500,000.

The similarly priced Yellowstone Club offers multiple resorts, 50 ski trails, and a dozen restaurants, with members-only areas equivalent to the entire Manhattan.

Donald Jr.'s club occupies the basement of a building and offers something different: access to power.

The club is called "Executive Branch."

Bible, Guitar, and Sneakers

Other presidents and their families have also faced controversies over profiting from office.

Hunter Biden was employed by a Ukrainian gas company as a director while his father served as vice president. The Clinton Foundation received foreign donations, although that was after Bill Clinton's presidency. President Carter's brother Billy sold beer under the family name.

Trump's situation is unique as the president himself actively promotes products. Items include a $59.99 "God Bless America" Bible, $399 sneakers inscribed with "Never Surrender," and an electric guitar selling for up to $11,500 (presidential signature edition, shipping extra).

New Year, New Profits

Entering the second year, the momentum shows no sign of slowing.

In January, the Trump Organization announced a third deal with Saudi Arabia within less than a year. This partner has a more direct relationship with the government, as it belongs to the Saudi sovereign wealth fund, whose chairman is Crown Prince Mohammed bin Salman. The Associated Press followed up on whether the Trump mansion, hotel, and golf course project outside Riyadh violated the group's promise of "not doing business with foreign governments," to which the Trump Organization responded that it does not "conduct business with any governmental entity," but provided no response about the project itself.

Meanwhile, as the two brothers' new drone company competes for Pentagon contracts, other government contractors in which they acquired shares over the past year are receiving tens of millions of dollars in new taxpayer funding. According to government contract records, these companies include a rocket engine manufacturer, an AI chip supplier, and a data analytics company.

When asked about potential conflicts of interest in the drone deal, Eric said: "I am incredibly proud to invest in companies I believe in." Donald Jr.'s spokesperson stated he will not "engage" with the government regarding the companies in his portfolio, adding, "Demanding that he stop living and earning a livelihood because his father is president, and no longer provide for five children, frankly, is a ridiculous and absurd standard."

The two brothers also joined a new investment firm as advisors, which raised $345 million through an IPO to acquire stakes in companies aimed at helping their father revive American manufacturing. After the Associated Press questioned the IPO prospectus's phrasing indicating "the company will target businesses seeking federal funds, tax credits, and government contracts," Trump's chief business lawyer submitted a new document deleting that phrasing.

Princeton historian Zelizer predicts that future presidents will display more restraint in self-enrichment, but he is concerned about the signals sent by Trump.

He said: "He has politically proven that making money off power does not come at any cost. You know you can do it."