Trump's Crypto Bank Built an Iran Sanctions Loophole

4 hours ago

A shell company used by the Trump family to purchase its own stablecoin also owns Bitsika, a Ghana-based fintech that advertised a crypto virtual card evading Iran sanctions, later removed after exposure.
Bitsika relied on AI-generated content without human review and used MSwipe, a middleware fintech with lax KYC protocols, to issue the cards, highlighting regulatory gaps in fintech and crypto.
MSwipe is a subsidiary of ALT5 Sigma (later AI Financial), which acquired $1.5 billion in crypto tokens from WLF, netting the Trump family $500 million, though WLFI token value has since plummeted.
The Synapse Rule, proposed to enforce fintech accountability post-Synapse collapse, stalled due to FDIC board vacancies under Trump's second term, while crypto legislation like the Clarity Act faces delays.
Cryptocurrencies enable sanctioned countries like Iran to bypass U.S. dollar controls, with $2.3 billion processed via Iranian exchange Nobitex using blockchains tied to figures pardoned or linked to Trump.
The story underscores concerns over conflicts of interest as Trump regulates crypto while his family profits from deals involving sanctioned entities, questioning enforcement of sanctions and financial oversight.

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