Bitcoin critic Peter Schiff has urged Congress to investigate what he describes as the largest crypto rug pull in history. Schiff’s demand follows controversial posts from former President Donald Trump’s Truth Social account, which allegedly contributed to a pump-and-dump scheme in the cryptocurrency market.
Schiff Questions Insider Knowledge
Schiff has raised concerns about the timing of Trump’s crypto-related posts, claiming they were strategically released to manipulate prices. He believes individuals with prior knowledge of these posts may have invested in cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Solana (SOL), only to sell at inflated prices once the posts went public.
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.
— Peter Schiff (@PeterSchiff) March 3, 2025
Who authored the two Sunday afternoon posts on the President's…
The economist is demanding transparency regarding who authored the Truth Social posts, who had access to them before their release, and the financial transactions tied to the event. Schiff has called for lawmakers to scrutinize financial records, emails, and text messages from Trump’s staff, family, and associates.
Allegations of Insider Trading
Schiff argues that if insider trading occurred, it could represent a major financial scandal. He is pressing for an investigation into whether Trump campaign donors, Truth Social employees, or close allies financially benefited from the posts. According to Schiff, tracing the flow of funds could expose a broader scheme designed to mislead retail investors.
“Donald Trump, the first crypto President, just helped pull off the biggest crypto rug pull of all time. A Congressional investigation is now warranted,” Schiff stated.
Schiff Rejects Claims of BTC Support
In a separate controversy, Schiff distanced himself from previous statements that some interpreted as support for Bitcoin reserves. He insists that Bitcoin enthusiasts misrepresented his words to manipulate public sentiment. Schiff maintains his stance that Bitcoin remains a speculative asset prone to manipulation by market insiders.
Despite Schiff’s accusations, Trump’s administration has continued to advance its crypto agenda. The U.S. SEC recently confirmed the formation of a 15-member Crypto Task Force aimed at developing clear regulations for the industry.
As investigations unfold, Schiff’s allegations could intensify scrutiny over the intersection of politics and cryptocurrency markets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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