Democratic members of the U.S. House of Representatives formally wrote to Treasury Secretary Scott Bessent on Wednesday (May 14), asking the Treasury Department to provide suspicious financial activity reports (SARs) related to the decentralized finance (DeFi) project World Liberty Financial (WLF) and Trump-related meme coin TRUMP.

SEC dropped charges against Justin Sun after he became the financier of WLF

The letter said the request was part of a broader Democratic investigation into "bribery, corruption and conflicts of interest," including a political action committee backed by Musk and WinRed, a major Republican fundraising platform.

Democratic lawmakers specifically named TRON founder Justin Sun, pointing out that he is a key financier of WLF. In January this year, Justin Sun purchased $45 million worth of WLF’s native token WLFI, bringing his cumulative investment in the project to $75 million. Not long after, the U.S. Securities and Exchange Commission (SEC) applied to the court to suspend enforcement proceedings against Sun, which aroused external doubts.

Trump’s relationship with Binance is also questionable

Democrats have voiced strong concerns over Trump's growing involvement in the crypto space, accusing him of using cryptocurrency schemes to profit for himself. Last week, New York Democratic Congressman Ritchie Torres introduced a bill that would prohibit Trump and future presidents and members of Congress from making personal profits through memecoins and stablecoins.

In addition, Democratic senators such as Senator Elizabeth Warren have also asked the government to investigate whether there is a conflict of interest between Trump and Binance, the world's largest cryptocurrency exchange.

Concerns about this have been further exacerbated by the fact that Abu Dhabi investment company MGX has announced that it will use the "USD1" stablecoin launched by WLF to finalize an investment agreement with Binance for up to US$2 billion. The move sparked widespread controversy.

TRUMP Token Dinner Event

At the same time, it was revealed that major holders of TRUMP tokens had the opportunity to have dinner with Trump, further deepening the outside world's doubts about the possible transfer of interests.

Treasury Secretary Bessant was appointed by Trump and has long held a friendly stance towards cryptocurrencies. It remains to be seen how he will respond to the questioning and pressure from House Democrats.