Peter Schiff, a vocal critic of Bitcoin, is urging Congress to investigate what he calls the largest “crypto rug pull” in history, stemming from recent posts made on President Donald Trump’s Truth Social account. Schiff alleges that these posts led to a strategic pump-and-dump scheme that manipulated cryptocurrency prices, benefiting individuals with prior knowledge of the announcements.
Schiff has called for transparency regarding the origins of the posts, specifically questioning who authored them and who had access to them before they went public. He has also demanded an investigation into the financial transactions tied to the timing of the posts, which he believes manipulated markets for coins like XRP, Cardano (ADA), Solana (SOL), Bitcoin (BTC), and Ethereum (ETH).
In his call for a full congressional probe, Schiff seeks access to emails and text messages from Trump’s staff, family, and affiliates. His aim is to uncover any coordination behind the crypto-related content shared on Truth Social. Schiff went as far as to say, “Donald Trump, the first crypto President, just helped pull off the biggest crypto rug pull of all time.”
Allegations of Insider Trading
Schiff suspects that individuals close to Trump may have exploited insider knowledge to make profitable investments in these cryptocurrencies before the public posts, which were followed by a market surge. He wants investigators to examine the timing and scale of investments made by these individuals and whether they sold their holdings after the prices inflated.
Schiff’s concerns extend to the need for a thorough investigation into the financial flows associated with the alleged scheme. He has emphasized the importance of scrutinizing communications related to these posts, including any messages exchanged between Trump’s team and those involved in the crypto dealings.
Schiff Rejects Bitcoin Reserve Support
Additionally, Schiff has distanced himself from previous comments that seemed to suggest support for a strategic Bitcoin reserve. He now claims his statements were misinterpreted by Bitcoin advocates, who he accuses of manipulating public perception to inflate Bitcoin’s price. Schiff remains adamantly opposed to Bitcoin’s use as a reserve asset, criticizing the tactics used by its proponents as fraudulent.
While Schiff intensifies his criticism, the Trump administration continues to push its pro-crypto agenda. U.S. SEC Commissioner Hester Pierce has confirmed the formation of a 15-member Crypto Task Force, which is tasked with developing regulatory guidelines for the cryptocurrency sector, signaling a shift toward greater oversight in the industry.
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