Economist Peter Schiff has called for a congressional investigation into what he alleges is the largest cryptocurrency “rug pull” in history, implicating former President Donald Trump in a potential pump-and-dump scheme. Schiff’s concerns stem from recent posts on Trump’s Truth Social account, which coincided with a sharp spike in crypto prices.
Schiff’s Allegations: Market Manipulation and Insider Trading?
- Trump’s Truth Social posts on Sunday reportedly triggered a crypto market surge, leading to speculation of intentional price manipulation.
- Schiff argues that those with prior knowledge of the posts may have profited unfairly, raising concerns about insider trading.
- He is demanding:
- A full congressional investigation into the timing and authorship of Trump’s posts.
- Disclosure of emails and text messages from Trump’s staff, family, campaign donors, and Truth Social employees regarding the crypto-related announcements.
Crypto Market Reaction and Divided Opinions
- Following Trump’s posts, prices of XRP, Cardano (ADA), Solana (SOL), Bitcoin (BTC), and Ethereum (ETH) spiked.
- Schiff claims this strategic timing led to massive financial gains for insiders.
- Reactions to Schiff’s claims are split:
- Brian Krassenstein, a crypto commentator, called it “the biggest Presidential grift in modern history.”
- Scott Melker (The Wolf of All Streets) mocked Schiff’s theory, joking that “someone longing and shorting Trump announcements with perfection would make Nancy Pelosi blush.”
Could This Lead to a Major Political Scandal?
- If Schiff’s allegations hold, it could be one of the biggest financial scandals involving a sitting or former U.S. president.
- However, no official investigation has been launched yet, and Trump’s administration has not responded to Schiff’s accusations.
- The March 7 White House Crypto Summit may provide more insight into Trump’s broader crypto policy agenda.
With crypto and politics becoming increasingly intertwined, Schiff’s call for an investigation could fuel further scrutiny over government involvement in digital assets.
Hidden Insight
Schiff’s allegations highlight a growing concern over the intersection of politics and crypto markets. If high-profile figures can move markets with a single post, it raises serious regulatory questions. Whether Trump is guilty of insider trading or not, this could accelerate efforts for stricter oversight of politically connected crypto investments.