Trump at Crossroads as Democrats Eye Family Probes Over Crypto, Drones and Impeachment

Democrats, in Control of Congress, Signal Corruption Probe Into President's Family

75% of Crypto Proceeds Flow to the Family

UAE Investment Followed by Chip Export Approval

Government Loan to Eldest Son's Investment Also Draws Scrutiny

Democrats Could Pursue Impeachment if Wrongdoing Emerges

After Democrats swept the U.S. Senate and House in the Nov. 3 midterm elections, analysts say President Donald Trump and his family now face rising political risk. Democrats are preparing to use the investigative powers of congressional committees to examine allegations that the Trump family sought private gain and abused public office. They are also weighing impeachment against Trump and loyalist cabinet officials including Defense Secretary Pete Hegseth.

Broad Corruption Probe Looms

The Wall Street Journal reported on Nov. 4 that Democrats are poised to make an investigation into the Trump family one of their first moves after taking control of Congress. House Democratic leader Hakeem Jeffries said during the campaign that "from Day One, we will hold the corrupt accountable."

The first targets would be companies, investment firms and financial institutions that financed Trump family businesses. Democrats plan to use hearings, subpoenas and document requests to trace links between money flows and administration decision-making.

The Trump family's cryptocurrency ventures are poised to become a central focus. One of the main targets is World Liberty Financial, or WLF, a company involving the Trump family and relatives of Steve Witkoff, the U.S. special envoy. WLF operates the dollar-pegged stablecoin USD1. It also sells WLFI tokens, which grant voting rights tied to operation of the platform. Reuters reported that 75% of proceeds from WLFI token sales go to the Trump family, meaning investor purchases directly benefit the president's relatives financially.

Crypto entrepreneur Justin Sun bought a total of $75 million of WLFI tokens. In February 2025, shortly after the Trump administration took office, the U.S. Securities and Exchange Commission paused a civil case against him. Democrats are also expected to examine potential conflicts of interest involving a United Arab Emirates investor's purchase of a 49% stake in WLF for $500 million and U.S. approval of artificial intelligence semiconductor exports to the UAE.

Similar questions surround USD1, which received a $2 billion investment from UAE investment firm MGX. The structure routes interest income from U.S. Treasuries purchased to back USD1 issuance to the Trump family. Democrats are also tracking a $620 million loan from the U.S. Defense Department to a rare-earth magnet company backed by Donald Trump Jr. A $12.8 million government contract awarded to drone-parts maker Unusual Machines has also drawn controversy.

The investigation is expected to be led by Senator Elizabeth Warren, a Massachusetts Democrat and longtime Trump critic. She is the leading candidate to chair the Senate Banking Committee.

Concern Extends to Possible Impeachment

If allegations of corruption or abuse of power are substantiated, Democrats could move to impeachment. The U.S. Constitution lists bribery as one of the grounds for impeaching a president or vice president.

In the U.S., a president is impeached if a majority of the House votes to approve articles of impeachment. The Senate then sits as a court of impeachment, with senators serving as jurors and the chief justice presiding over witness questioning and other proceedings. A two-thirds vote is required for conviction and removal.

Democrats did not win the 67 Senate seats needed to convict on their own. Trump was impeached twice by the House during his first term, but the Senate protected him both times.

This time, some analysts say, the outcome could be different. If Democrat-led investigations uncover major misconduct, including the use of public power for Trump's private benefit, Republicans could abandon a president whose grip on party leadership has been weakened by a crushing midterm defeat. Under the U.S. system, Vice President JD Vance would succeed to the presidency if Trump were removed.

Hwang Jung-soo, New York correspondent, Korea Economic Daily, hjs@hankyung.com