Two Democratic senators are pushing the US Securities and Exchange Commission (SEC) for answers after its enforcement director, Margaret Ryan, resigned in March amid reports of internal clashes over cases tied to the allies of President Donald Trump.
Senator Richard Blumenthal sent a letter to SEC Chair Paul Atkins on Monday, questioning the agency’s decision to drop a fraud case against Tron founder Justin Sun, who is a partner of the Trump-backed World Liberty Financial (WLFI) crypto platform. The case was dropped just 11 days before Ryan stepped down. Senator Elizabeth Warren sent a separate letter asking whether SEC top leaders resisted Ryan’s pursuit of cases connected to Trump’s close circle.
Both letters deepen the Democratic Party’s scrutiny of Trump’s growing crypto empire, which spans WLFI, the Official Trump memecoin, and Trump Media & Technology Group. Critics continue to warn that these ventures create conflicts of interest with the presidential duties of Trump. Trump had also pardoned former Binance CEO Changpeng “CZ” Zhao in October, fueling more suspicions of backroom dealings. Zhao’s lawyer has denied these allegations.
Blumenthal accused the SEC of showing “preferential treatment for financial partners of President Trump against the advice and warnings of senior staff.”
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Blumenthal is now demanding all records and communications between the SEC’s Division of Enforcement and senior leadership since January 20, 2025, covering potential enforcement actions against crypto firms. He also wants records of communications involving the Trump and Witkoff families. WLFI’s leadership includes Zach Witkoff, while Eric Trump, Donald Trump Jr., and Barron Trump all served as founding members.
Blumenthal highlighted that illicit crypto activity surged to $154 billion in 2025, alleging that Sun’s Tron network played a big role, and it accounted for 58% of all illicit crypto finance in 2024. Warren called Ryan’s brief tenure at the SEC “troubling.” The SEC, meanwhile, insists it bases its enforcement decisions on facts and law and not politics.
