- Peter Schiff demanded a congressional probe into Trump’s alleged crypto market manipulation.
- Critics claimed Trump’s Truth Social posts fueled a pump-and-dump scheme benefiting insiders.
The cryptocurrency market has been on a rollercoaster, swinging from a brutal crash to a brief recovery, only to slide back into bearish territory.
Amid this volatility, former President Donald Trump made waves on the 2nd of March by announcing the creation of a U.S. Crypto Strategic Reserve. This move triggered a sharp surge in digital asset prices and trading volumes.
Peter Schiff alleges Trump for crypto pump and dump
However, controversy soon followed, with prominent Bitcoin critic Peter Schiff calling for a congressional investigation into what he deems the “biggest crypto rug pull in history.”
Taking to X (formerly Twitter), Schiff noted,
“Donald Trump, the first crypto President, just helped pull off the biggest crypto rug pull of all time. A Congressional investigation is now warranted to find out the following regarding this pump and dump scheme.”
For those unaware, Schiff’s allegations stem from Trump’s Truth Social posts, which allegedly fueled a pump-and-dump scheme, raising concerns about insider activity and market manipulation.
What more has Schiff to tell?
Schiff has intensified his criticism, alleging that Trump’s Truth Social posts were strategically timed to manipulate the crypto market.
He argues that certain individuals with prior knowledge of these announcements may have capitalized on the surge by investing in assets like Ripple [XRP], Cardano [ADA], Solana [SOL], Bitcoin [BTC], and Ethereum [ETH] before offloading them at inflated prices.
Calling for a full congressional investigation, Schiff is pressing lawmakers to uncover who was involved and whether insider trading played a role.
He has also demanded access to communications, including emails and text messages from Trump’s inner circle. This is to determine if there was any coordinated effort behind the controversial posts.
Mixed community reaction
For the first time, Schiff’s argument found unexpected support. Brian Krassenstein, Co-Founder and CFO of InterSocial, for example, pointed out,
“I’m all for crypto and Bitcoin, but this combined with the launch of the TRUMP and Melania Memecoins, as well as the operations of World Liberty Finance is the biggest Presidential grift in modern history.”
However, some defended Trump against the allegations. For instance, Dan Gambardello, founder of Crypto Capital Venture stated,
Dan Gambardello
Is insider trading also into play?
While concluding his argument, Schiff continued to push for a thorough investigation. He urged authorities to determine whether individuals close to Donald Trump profited from the market swings.
He insists on scrutinizing crypto purchases made before the Truth Social posts went public, emphasizing the need to track investment amounts and the timing of subsequent sales.
If insider trading is uncovered, Schiff warns it could unravel one of the most significant financial scandals in recent history.
As expected he put it best when he said,
“We also need all emails or text messages that involve any members of the President’s staff, his or their family or friends, his campaign donors, or Truth Social employees, that relate to either of the two Sunday Truth Social posts.”
