US Senator Chris Murphy (D-CT) has accused President Donald Trump of running a “backdoor bribery scheme” through his personal cryptocurrency $TRUMP. Speaking on April 9, Murphy said the coin was being used for secret payments from CEOs and foreign oligarchs in exchange for political favors, calling it “the biggest scandal in the history of the Presidency.”
Murphy didn’t hold back in his statement:
“Today is the 80th day that the US President is running a backdoor bribery scheme in which any CEO or foreign oligarch can send him money secretly through his crypto coin scam in exchange for favors.”
The allegations come just days after Trump reversed his tough tariff policy, issuing a 90-day suspension on most trading partners, except China, raising questions about connections between digital asset flows and sudden geopolitical shifts.
A Meme Coin in the Crosshairs
The cryptocurrency at the center of the controversy, $TRUMP, was launched in January 2025 as part of a dual project by the president and his wife, who also launched her own token, $MELANIA. Initially marketed as a “supporter-powered ecosystem”, the meme coin quickly gained traction among MAGA-aligned crypto traders who saw it as a loyalty badge and speculative asset.
According to CoinGecko, $TRUMP peaked at $72.62 on January 19, with a market capitalization of $14.58 billion. Prices have since declined, down 13% in the past week, but the coin is still traded, especially on decentralized exchanges.
This financial footprint, combined with Trump’s continued political presence, is what has Murphy questioning the coin’s purpose. He says it isn’t just a meme coin anymore, but a direct channel for influence-buying.
Social Media Responds: Transparency vs Anonymity
Murphy’s explosive allegations were met with applause and pushback on X (formerly Twitter).
“All transactions are on the blockchain, so I’m not sure how secret it can be,” one user replied.
“Post your proof,” another demanded. Blockchain enthusiasts say Murphy’s claim is mistaken. Blockchain data is public, but wallet owners can be anonymous unless they choose to or are forced to reveal their identities. This creates a grey area that can, in theory, be used for secret transfers, especially when facilitated through privacy tools or decentralized platforms that don’t have Know Your Customer (KYC) enforcement.
Crypto policy expert Maya Turner said,
“The blockchain is transparent in terms of ledger visibility. But the people behind the wallets? That’s a whole different ballgame. Without strict regulation, political payments disguised as market activity aren’t as far-fetched as they seem.”
Trump’s 90-Day Tariff Pause Fuels Suspicion
Adding to the drama is President Trump’s 90-day suspension of tariffs on nearly all U.S. trade partners, which he announced unexpectedly this week. China is the only exception and markets reacted with mixed signals, stocks went up initially and then down as U.S.-China relations uncertainty set in.
Trump’s post on Truth Social just hours before markets opened Wednesday added more fuel to the fire.
“GREAT TIME TO BUY,” he wrote—prompting Senator Adam Schiff (D-CA) to ask if this is insider trading.
“This isn’t just about tariffs,” Schiff reportedly said in a press briefing. “It’s about whether financial policy is being timed to benefit connected investors and possibly even the President himself.”
No Investigations Yet, But Pressure is Mounting
As of now, no investigation into the $TRUMP coin or its financial flows has been confirmed. But the political heat is on. Senators Schiff and Elizabeth Warren (D-MA) are joining Murphy’s call for a deeper look into digital assets tied to elected officials.
In the absence of regulatory action, watchdog groups are collecting data on wallet interactions with the $TRUMP coin to see if they can find any suspicious activity tied to known business or political figures.
Expert View: Cryptocurrency, Politics and Regulatory Blindspots
Legal and financial experts say Murphy’s claims may be unproven but they highlight the bigger issue of how political figures interact with crypto. The lack of federal policy on token issuance, ownership disclosure and campaign finance applications has created a Wild West.
Some experts have argued that cryptocurrency enables real-time fundraising and financial mobilization but when a political figure issues or endorses a token the line between influence and investment gets blurry. The SEC and FEC have yet to adapt to this hybridized frontier.
The U.S. Securities and Exchange Commission (SEC) has warned that tokens tied to individuals or political entities may be unregistered securities depending on their design and use. 
A Bigger Question: Is Crypto the New Political Currency?
Whether Murphy’s bribery claims are true or not, they pose a bigger question: has crypto become the new shadow currency of politics? While traditional political donations are subject to disclosure laws and contribution limits, crypto transactions, especially those on decentralized platforms, can skirt those rules.
Political analysts say tokenized ecosystems allow politicians to raise money, mobilize support and reward loyalty without going through the traditional financial channels.
A vast majority believe that when a politician launches a coin, it’s not just a meme. It’s a financial product tied to influence, visibility, and possibly power. They believe that we’re entering an era where political capital and crypto capital are merging.
Wrap-Up: A Scandal, A Test, or Both?
Murphy’s accusations have put a spotlight on a complex and fast-moving issue: digital assets and political power. No formal charges or investigations have been filed, but the questions about transparency, influence and crypto for backroom deals are not going away anytime soon.
Whether the $TRUMP coin becomes the subject of a major probe or just a meme-driven fad, it’s already a cautionary tale in the digital age of politics.
FAQs
What is the $TRUMP coin?
The $TRUMP coin is a meme cryptocurrency launched by Donald Trump in January 2025. It was introduced alongside a companion token by Melania Trump and quickly gained popularity among political supporters and speculators.
Can blockchain-based coins be used for secret transactions?
While blockchain transactions are transparent, wallet addresses can be anonymous. This means funds can be transferred without easily linking them to real-world identities, creating opportunities for misuse without clear rules.
Has there been an official investigation into Trump’s coin?
As of April 2025, there is no official investigation into the $TRUMP coin. But public officials like Murphy and Schiff are calling for probes into its use and possible ties to insider trading or undisclosed political payments.
How did the tariff suspension affect the market?
The 90-day tariff suspension boosted investor confidence for a bit, but the market declined when the tensions with China weren’t resolved. The timing of Trump’s announcement raised questions about manipulation.
Are cryptocurrencies allowed in U.S. political campaigns?
Cryptocurrencies can ‘be used in political campaigns under certain conditions, but they must be disclosed and the source of funds must be identifiable. But coins issued by politicians themselves could be a legal gray area.
Glossary
Cryptocurrency: A digital asset ‘that uses cryptographic techniques to secure transactions and is typically decentralized via blockchain technology.
Blockchain: A distributed ledger system that publicly records all transactions ‘across a network of computers, making it transparent and immutable.
Bribery Scheme: The illegal exchange ‘of money or gifts for political or business favors.
Insider Trading: Buying or selling stocks based on non-public information, which is’ illegal under U.S. securities law.
Tariff: A tax imposed by the government on imported or exported goods, often used in trade deals or protectionism.
Wallet Address: A unique string of characters to send and receive cryptocurrencies. Wallets can be anonymous unless linked to verified user’ accounts.
Know Your Customer (KYC): A ‘regulatory requirement for financial institutions to verify their clients to prevent fraud, money laundering and terrorist financing.
References
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