A $6.2m banana, a crypto empire and Trump's potential conflicts

In a surprising turn of events, Justin Sun, a Chinese entrepreneur known for his ventures in cryptocurrency, recently made headlines for purchasing a banana that was part of an art installation for an astonishing $6. 2 million. This extravagant act was not just a quirky moment; it was followed by another significant investment. Sun decided to invest $30 million into a struggling cryptocurrency firm called World Liberty Financial. This company had faced challenges since its launch in October, with many investors hesitant about its future. However, the firm had a notable connection to Donald Trump, which made it more appealing to some investors. Sun's investment was crucial as it allowed Trump to potentially profit from the venture, with estimates suggesting that Trump and his family could earn around $20 million or even more. Interestingly, Justin Sun is currently facing fraud charges in the United States related to his own cryptocurrency business, and he did not provide any comments regarding his motivations for investing in World Liberty Financial. This situation has raised alarms among ethics experts, who are concerned that Trump's expanding business interests could lead to conflicts of interest that might influence U. S. policy. Richard Painter, who served as the chief ethics lawyer during George W. Bush's presidency, expressed that the conflicts have significantly increased due to the vastness of Trump's business empire. In response to these concerns, Trump's team downplayed the issues, stating that he had distanced himself from his multi-billion-dollar real estate business to focus on his role as president. They emphasized that Trump did not enter politics for personal gain but rather to serve the American people. However, critics argue that Trump has not taken sufficient action to address the potential for corruption as he prepares for a return to the White House. During his first term, Trump faced scrutiny over conflicts of interest, particularly regarding the Trump International Hotel in Washington, D. C. This hotel became a hub for lobbyists and foreign diplomats, raising concerns that Trump could profit indirectly from his position. Critics accused him of violating the U. S. Constitution's ban on foreign emoluments, which prohibits presidents from profiting from their office. Experts believe that the growth of Trump's business empire, which now includes a publicly traded social media company and connections to a Saudi-backed golf league, has made it easier for individuals seeking to influence him to move money discreetly and in larger amounts. Michael Ohlrogge, a law professor at New York University, noted that the scale and ease of these transactions have increased significantly. He explained that a foreign government or business could purchase advertisements on Trump's social media platform, Truth Social, to create the illusion of success, potentially boosting its stock price. Although Trump's media company has a market value exceeding $7 billion, it has reported less than $5 million in ad sales this year. Nevertheless, experts believe that even minimal spending could lead to substantial gains for Trump, who owns a significant portion of the company. Trump's involvement in the cryptocurrency industry has become increasingly pronounced, as he has promised to advocate for it during his time in office. His plans include rolling back regulations and proposing a national Bitcoin reserve, where the government would stockpile Bitcoin. Virginia Canter, chief ethics counsel at Citizens for Responsibility and Ethics in Washington, highlighted that the regulation of cryptocurrency could directly impact Trump's personal wealth. While some believe that Trump's pro-crypto stance reflects the interests of the electorate, others argue that it creates a conflict of interest that could benefit his businesses. Recently, Trump announced his intention to nominate Paul Atkins, a lobbyist for the cryptocurrency industry, to lead the Securities and Exchange Commission (SEC). This move is expected to result in a reduction of enforcement actions at the agency, which oversees publicly traded companies like Trump's media firm. The SEC had previously cracked down on the cryptocurrency industry under President Joe Biden. Justin Sun, the investor in World Liberty Financial, was also involved in an SEC investigation last year, facing charges for failing to register properly while selling digital assets. If the SEC's leadership changes, it is possible that the case against Sun could be dropped. In the United States, there are few legal restrictions on conflicts of interest for presidents. While the Constitution theoretically prohibits presidents from accepting gifts from foreign governments, the Supreme Court has dismissed lawsuits related to Trump's conflicts of interest during his first term. Trump has previously claimed that his business suffered during his presidency due to partners distancing themselves amid controversies. As he prepares for a second term, Trump has yet to present an ethics plan, which is customary for incoming presidents, and he continues to promote his businesses. Experts express concern that Trump has set a precedent that future presidents may follow, believing they can act without accountability. Richard Painter warned that Trump's actions send a message that he can operate without restrictions, which could have lasting implications for the presidency.