### A Legal Battle in the Crypto Space

Derek Khanna, a **prominent conservative political commentator** and the **general counsel** for the Bitcoin Advocacy Project, has initiated legal proceedings against a **crypto startup** in a Washington, D.C. court. Khanna claims that the startup's executives have **"pocketed large sums of money"** and subsequently **"fell off the face of the earth."**  

In a recent interview, Khanna expressed his frustration, stating, **"I just want my money back."** This situation raises important questions about **accountability** and **transparency** within the rapidly evolving cryptocurrency market. The crypto industry has faced increasing scrutiny, and cases like this highlight the potential risks for investors and advocates alike.

"I just want my money back," said Derek Khanna, who holds several roles and side hustles, including head of policy and general counsel for the Bitcoin Advocacy Project.

Conservative Bitcoin Advocate Takes Legal Action Against Crypto Startup: What Happened?

The 220 winners of a cryptocurrency contest were told on Monday to look out for an email featuring “the most exclusive invitation in the world”. As a reward for spending immense amounts of money, in some cases millions of dollars, they had won the prize of attending a private gala with **Donald Trump** at his own Washington DC golf club later this month.

Awarding access to the president in exchange for investment in his crypto endeavor was Trump’s latest conflict of interest in a political career filled with, in the words of one of his most repeated catchphrases, “many such cases”. Real estate holdings, a media company, merchandising deals, **fraud** and most recently Qatar’s gift of a $400m plane are only some of the myriad of entanglements that government ethics watchdogs have warned about for a decade now.

Trump’s foray into cryptocurrency is a unique combination and escalation of these conflicts. It involves him leveraging his presidency for personal gain, potentially opening himself up to foreign influence and operating in an industry he has immense power to deregulate. It marries Trump’s unscrupulous business tendencies with an industry that is notorious for fraud, scams and a lack of transparency. It may also become the most lucrative business he’s ever been involved in.

### Auctioning off influence

Trump’s shift from cryptocurrency skeptic to industry operator last year was already a concern for ethics and transparency advocates, who worried that, if elected, he could potentially push through crypto-friendly legislation that would benefit his personal financial interests. The auctioning off of direct access to the president through a crypto scheme intensified fears around political corruption and attempts to buy influence, especially given the opaque nature of the contest. The names of the winners are still unknown.

The rules of the Trump dinner contest stated that the top 220 buyers of $TRUMP, which were listed on a public leaderboard on the coin’s website, would receive an invitation to dine with the president. The top 20 on the leaderboard would gain even more personal access through a VIP reception featuring Trump. The leaderboard only disclosed contestants’ usernames and crypto wallet codes, no other identifying information. Winners could also write down any name they chose on the invite, according to the website’s frequently asked questions page, adding another layer of uncertainty to who will actually attend.

One of the primary worries from Democrats and ethics groups surrounding the contest is that it may allow foreign actors to purchase influence with Trump through investment in his cryptocurrency. Multiple analyses of the $TRUMP leaderboard have already found that a large percentage of the top buyers used foreign crypto exchanges that prohibit US users from trading on their platforms, suggesting that the winners may be foreign residents.

The wallet of the top $TRUMP buyer on the leaderboard, who owns more than $18m worth of the coin, has been linked to Hong Kong-based crypto entrepreneur Justin Sun. In 2023, the Securities and Exchange commission (SEC) charged Sun with fraud and other securities violations related to cryptocurrency trading. Since Trump took office, however, the SEC has paused that investigation. Sun also invested tens of millions of dollars into the Trump family’s other crypto ventures last year, and is an adviser to the World Liberty Financial company that Trump’s sons control.

The $TRUMP coin has also attracted foreign-tied investors beyond the contest. On Monday, a small technology company called GD Culture group that has a Chinese subsidiary company and has a TikTok e-commerce business announced that it had secured $300m in funding to buy up $TRUMP coins. Its purchase would coincide with Trump deciding how to handle TikTok’s potential ban or forced sale within the US.

### The Trump family business isn’t real estate any more

The Trump family’s entrance into cryptocurrency is a relatively recent development, but since the start of last year, the Trumps have thrown themselves into the industry. Trump heavily courted crypto investors during the presidential election campaign, becoming the first candidate to accept crypto donations and promising to turn the US into the “crypto capital of the planet” at a Bitcoin conference in July. Later that year, Trump announced the creation of the World Liberty Financial crypto venture – a company that has raised around $550m and which the Trump family controls.

Trump’s reach into the crypto world deepened following his election victory, as he became involved in the creation of so-called memecoins that tend to fluctuate wildly through speculative trading. The $TRUMP cryptocurrency, along with a $MELANIA coin, launched in mid-January days before his inauguration. The value of $TRUMP initially surged to around $75 a coin before crashing down, only to begin slowly increasing in value after Trump announced that the top buyers of the coin would win an exclusive dinner with him.

Since then, crypto firms associated with Trump have expanded to create another cryptocurrency called USD1, a vague “Trump reward points” program and an Exchange-Traded Fund or ETF. This week, Eric Trump also announced that a Bitcoin mining firm the family controls would go public.

Trump’s personal involvement in each of these projects is convoluted, and the companies that control the various aspects of the family’s crypto empire are set up somewhat like nesting dolls. He does not directly own the company that made the $TRUMP memecoin, for instance. Instead, the Trump Organization owns a firm called CIC Digital LLC, which, along with another company called Fight Fight Fight LLC, oversees and profits from the trade of the coin. Those two LLCs also hold around 80% of the coin’s reserves, a share that on paper is worth more than $2bn at current market value.

The Trump family’s burgeoning crypto empire is a remarkable turnaround from when Trump called Bitcoin a “scam” in 2021 and said it should be highly regulated. There have been huge developments in the cryptocurrency world since then, but the most pertinent in this case may be that Trump now stands to profit from it.

### Backlash to Trump deregulating crypto

While the Trump family has been building out its crypto businesses, the Trump administration has also been pushing for the deregulation of the industry and appointed a pro-crypto head of the SEC. In April, the Department of Justice closed its cryptocurrency fraud investigations unit to align with a pro-crypto executive order from Trump.

These moves towards deregulation are happening while the crypto industry is still rife with scams, and only a few years after Sam Bankman-Fried’s fraudulent management of the FTX cryptocurrency exchange resulted in one of the largest financial scandals in modern history. The potential loosening of rules and backing of the crypto industry has effects that go beyond corruption concerns and financial impacts as well. Bitcoin mining facilities that have expanded across the US are also causing energy supply issues, environmental concerns and noise pollution issues, all of which are regulated by agencies that Trump can influence.

Democratic lawmakers and even some Republicans have pushed back against Trump’s conflicts of interest, with some Trump allies suggesting that the dinner was a step too far. Connecticut Senator Richard Blumenthal formalized those concerns last week by announcing an ethics inquiry into the president’s crypto operations.

“President Trump’s financial entanglements to the $TRUMP coin, as well as the attempted use of the White House to host competitions to prop up the value of $TRUMP, represents an unprecedented, pay-to-play scheme to provide access to the Presidency to the highest bidder,” Blumenthal wrote in a letter last week.

Trump’s crypto ventures have also derailed a landmark bill to regulate some forms of cryptocurrency, called the Genius act, that formerly had bipartisan support. Senate Democrats, along with three Republicans, voted down a procedural motion that would have allowed the bill to proceed in its current form – arguing that it needed stronger protections to prevent the sort of conflicts Trump was creating.

“It has been shocking to see Donald Trump move at breakneck speed to use his position as president to reap billions of dollars for himself personally and for his family,” Massachusetts Senator Elizabeth Warren said in a speech last week opposing the bill. “The biggest corruption scandal in modern history is unfolding right now and no one is paying attention to it”.

Trump’s foray into cryptocurrency involves him leveraging his presidency for personal gain and operating in an industry he has power over

Trump's Crypto Empire: A New Frontier of Political Conflicts and Financial Scandals

**Arizona's recent legislative moves on cryptocurrency have sparked discussions nationwide.** Governor Katie Hobbs vetoed several crypto-related bills but approved regulations for Bitcoin ATMs, marking a significant moment for crypto governance in the state.

### **The Vetoed Bills**
- **Senate Bill 1373**: Aimed to establish a Digital Assets Strategic Reserve Fund. Governor Hobbs cited "volatility in cryptocurrency markets" as the primary reason for the veto.
- **Senate Bill 1025**: Proposed investing up to 10% of the state's treasury and retirement funds into cryptocurrency.
- **Senate Bill 1024**: Sought to allow cryptocurrency payments for taxes, fines, and fees.

### **Bitcoin ATM Regulations**
The approved bill introduces strict regulations for Bitcoin ATMs, including:
- **Multilingual warnings** about potential scams.
- A **daily cap of $2,000 for new customers** and **$10,500 for returning customers**.
- A **refund policy** for new users scammed within 30 days, covering all fees.

This move reflects a cautious yet progressive approach towards cryptocurrency regulation, balancing innovation with consumer protection.

Arizona recently proposed multiple cryptocurrency bills, which were all vetoed by Arizona Governor Katie Hobbs. She also approved a bill to regulate bitcoin ATMs by requiring multilingual warnings about scams and putting a cap of $2,000 a day for new customers and $10,500 per day for returning customers, according to a report by Coin Telegraph.

Arizona Governor Takes a Stand: Vetoes Crypto Bills but Greenlights Bitcoin ATM Regulations

**Bitcoin** has surged past the **$104,000** mark, marking a significant double-digit increase over the past week. Currently trading at **$104,271**, BTC is inching closer to its all-time high of **$109,000**. This upward movement isn't happening in a vacuum; it's closely linked to broader macroeconomic improvements, including eased trade tensions between the US and China, which has sparked a renewed risk appetite among investors.

### **Taker Buy Sell Ratio: A Bullish Signal**

A critical indicator, the **Taker Buy Sell Ratio**, has risen to **1.02**, a level historically associated with pivotal moments in Bitcoin's price trajectory. This metric, which compares the volume of market buy orders to sell orders, suggests aggressive buying activity is on the rise. Similar levels were observed during Bitcoin's late 2022 lows and the October 2023 breakout above **$30,000**.

![Bitcoin Taker Buy Sell Ratio](https://s3.tradingview.com/news/image/newsbtc:0b664bfa7094b-386c43ad09613584b72e4fe86c95edd0-resized.jpeg)

Analysts caution, however, that while this indicator points to potential continued upward momentum, it has also preceded periods of high volatility in the past.

### **Institutional Support Strengthens Market**

The **realized price** of Bitcoin, reflecting the average purchase price of all circulating BTC, continues to climb. This trend, driven by institutional inflows through **spot Bitcoin ETFs** and corporate acquisitions, indicates a robust market structure unlike previous cycles where a reversal in realized price often led to corrections.

![Bitcoin’s realized price](https://s3.tradingview.com/news/image/newsbtc:0b664bfa7094b-2259ebe353e8bea4827141180ea0fd71-resized.jpeg)

With macroeconomic conditions favorable and on-chain metrics bullish, Bitcoin's rally may have further to go.

Bitcoin has been able to climb above the $104,000 level, following a notable double-digit increase over the past week. At the time of writing, BTC trades at $104,271, narrowing the gap to its all-time high of $109,000.This recent price surge is not occurring in isolation. Instead, it appears closel…

Bitcoin's Bullish Signal: Key Indicator That Foreshadowed Past Rallies Activates Again

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New York City, NY, May  13, 2025  (GLOBE NEWSWIRE) --     With the rapid age of online gambling, crypto casinos and bitcoin have been a game-changer that...

BitStarz: The Ultimate Bitcoin Casino Experience - Fast, Fair, and Fun!

**President Donald Trump's** recent visit to **Saudi Arabia** marks the beginning of his first major international trip in his second term, focusing on strengthening ties with key Middle Eastern allies. The trip underscores the **deepening cooperation** between the US and Saudi Arabia, particularly in military and economic sectors.

### **Key Highlights of the Visit**
- **Military and Economic Agreements**: Several memoranda of understanding were signed, focusing on military cooperation, including the modernization of the Saudi armed forces and health capabilities development.
- **Investment Forum**: Trump is set to speak at a US-Saudi investment forum, with notable figures like **Elon Musk** listed as speakers, highlighting the economic dimension of the visit.
- **Strategic Alliances**: The visit aims to reinforce the US's strategic alliances in the region, with stops planned in Qatar and the United Arab Emirates, focusing on investment in AI, chips, manufacturing, and energy.

### **The Bigger Picture**
This trip is not just about immediate agreements but also about setting the stage for future cooperation in a rapidly changing Middle East. The presence of top US and Saudi officials, alongside leading business figures, signals a mutual interest in long-term partnership and stability in the region.

President Donald Trump is in Saudi Arabia on Tuesday as he embarks on the first major international trip of his second term. Follow here for the latest live news updates.

Conservative Bitcoin Advocate Takes Legal Action Against Crypto Startup: What Happened?

Summary:

Derek Khanna, a conservative commentator, sues a crypto startup.

Accusations include executives "pocketing large sums of money" and disappearing.

Khanna's statement: "I just want my money back."

The case underscores the need for accountability and transparency in crypto.

A Legal Battle in the Crypto Space

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Trump's Crypto Empire: A New Frontier of Political Conflicts and Financial Scandals

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