Blumenthal questions SEC over Trump-linked crypto enforcement
Senator Richard Blumenthal wrote a letter to SEC Chairman Paul Atkins requesting records and communications related to enforcement decisions involving cryptocurrency firms tied to Justin Sun, following a settlement in which Sun agreed to pay a $10 million civil penalty. The letter requests documents and messages that explain the agency’s handling of those enforcement matters. Blumenthal’s inquiry specifically notes that some of the firms under review have connections to cryptocurrency businesses linked to Donald Trump.
Senator Richard Blumenthal wrote to SEC Chairman Paul Atkins requesting records and communications related to enforcement decisions involving cryptocurrency firms tied to Justin Sun after a settlement with Mr. Sun included a $10 million civil penalty. In the letter, Blumenthal expressed concern about the abrupt resignation of Margaret Ryan and reported interventions by senior SEC leadership that he said prohibited the Division of Enforcement from pursuing cases against certain cryptocurrency companies.
“Ms. Ryan’s abrupt departure from the agency raises questions in light of her short tenure and reports that senior leadership intervened to prohibit the Division of Enforcement from pursuing cases against certain cryptocurrency companies,” Blumenthal wrote. “Indeed, on March 5, 2026, approximately 11 days before Ms. Ryan stepped down from her position, the SEC dismissed fraud charges against Mr. Sun and several of his companies after he agreed to pay a $10 million fine.”
Blumenthal’s letter requests records and communications that relate to those enforcement decisions.
Senator Richard Blumenthal’s letter describes Justin Sun’s financial involvement in cryptocurrency projects associated with President Trump and identifies specific token purchases and investments by Mr. Sun. “Facing federal prosecution, Mr. Sun began to buy into President Trump’s cryptocurrency ventures, first by purchasing millions of dollars worth of the President’s memecoin, $TRUMP, which made Sun its largest holder and entitled him to a private dinner with the President,” Blumenthal wrote. “Mr. Sun and his firms then went on to become an early investor in the Trump family’s larger cryptocurrency venture, World Liberty Financial (WLFI), providing tens of millions in support to WLFI’s governance token and its stablecoin, USD1.”
The letter specifies that the initial transactions involved purchases of the TRUMP memecoin totaling “millions of dollars” and that those purchases made Sun the largest holder of that memecoin. It also specifies that Sun and his firms provided “tens of millions” in support to World Liberty Financial’s governance token and to its USD1 stablecoin. The description in the letter links these asset categories directly to Sun’s reported financial activity.
Blumenthal included these details in his request for SEC records and communications about enforcement decisions involving firms tied to Justin Sun. The letter presents the described purchases and investments as the factual basis for the committee’s inquiries.
Senator Richard Blumenthal’s letter to SEC Chairman Paul Atkins requests records and communications related to enforcement decisions involving cryptocurrency firms tied to Justin Sun and raises concerns about reported interventions and the dismissal of fraud charges after a settlement. The inquiry underscores demands for transparency and scrutiny of SEC enforcement practices concerning cryptocurrency businesses linked to the Trump family and seeks documentation to clarify the agency’s handling of those matters.
