Peter Schiff Calls for Investigation into Trump’s Crypto Market Manipulation

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 experienced significant volatility, swinging from a severe crash to a brief recovery, only to decline again.

On March 2, former President Donald Trump announced the creation of a U.S. Crypto Strategic Reserve, which led to a surge in digital asset prices and trading volumes.

Peter Schiff’s Allegations of a Crypto Pump and Dump

Controversy arose as Bitcoin critic Peter Schiff called for a congressional investigation, referring to the events as the “biggest crypto rug pull in history.” Schiff tweeted:

> “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.”

Schiff’s allegations suggest that Trump’s Truth Social posts incited a pump-and-dump scheme, raising concerns about market manipulation and insider trading.

Schiff’s Critique Continues

Schiff intensified his criticism, claiming that Trump’s posts were strategically timed to influence the crypto market. He alleged that individuals with prior knowledge of these announcements bought assets like Ripple (XRP), Cardano (ADA), Solana (SOL), Bitcoin (BTC), and Ethereum (ETH) to sell at inflated prices.

He is calling for a full congressional investigation to identify those involved and whether insider trading occurred, demanding access to communications, including emails and text messages from Trump’s circle.

Community Reactions

Unexpectedly, Schiff gained some support, notably from Brian Krassenstein, who remarked:

> “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.”

Conversely, others like Dan Gambardello defended Trump against the allegations.

The Insider Trading Question

Schiff continued to advocate for an investigation, urging scrutiny of crypto purchases made before Trump’s posts were public, including investment amounts and timing of sales. He warned that uncovering insider trading could reveal one of the most significant financial scandals in recent history.

As he aptly stated:

> “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.”