Trump critics get fresh probe ammo as family venture closes US government deal

Two new deals by ventures with ties to the Trump family could soon become fresh probe points for Democratic lawmakers such as Elizabeth Warren, Maxine Waters, and Richard Blumenthal, who have initiated past inquiries into the first family’s business dealings. 

Earlier today, Fortune reported that AI Financial Corporation (NASDAQ: AIFC), a publicly traded crypto firm with links to President Donald Trump’s family, has purchased Block Street Corp., a crypto infrastructure business founded by one of its own advisors, Matthew Morgan. The deal is worth up to $43 million. 

In another press release, Autonomous Power Corporation (Powerus), a US-based drone maker, announced that it closed a deal for its Guardian-2 Interceptor systems after a U.S. Air Force trial. 

The Trump connection in both deals is expected to be a red flag for lawmakers. 

What is the AI Financial deal about?

Block Street Corp. is designed to help companies issue digital tokens. The acquisition is meant to expand its payment systems into “tokenized assets” and “real-world asset tokenization.”

Since August 2025, when Ai Financial, formerly known as Alt5 Sigma, announced a partnership with the Trump family’s World Liberty Financial to stockpile $1.5 billion in cryptocurrency, shares have fallen more than 90%.

Following the acquisition, Morgan, who is the biggest shareholder of Block Street, joined AI Financial as the “global head of vision.”

He told Fortune that Block Street was offered to multiple public companies in late 2025, and he rejected offers with “potentially more than $100 million in upside.” 

Matthew denies that the transaction is self-dealing, but records show Block Street was only created in late October 2025 and has yet to generate any revenue. 

Is the Powerus deal legitimate?

According to the release by Powerus, the Guardian-2 Interceptor is a “low-cost, semi-autonomous, high-speed counter-drone interceptor platform” that is designed to neutralize enemy drones directed at US assets. 

It recalled that the air force tested it out to “address critical capability gaps for small teams operating ‘outside the wire'” for a “lightweight, deployable capability to detect, track and defeat Group 1-3 small unmanned aerial systems in austere environments.” 

Speaking about the deal, Brett Velicovich, Co-Founder of Powerus, said: “This is about saving American lives,” citing round-the-clock threats to critical infrastructure and lives in the Middle East. Velicovich added, “The Guardian-2 works. The kill chain works.” 

According to a PBS report, Powerus denied any conflicts of interest after it brought POTUS’ eldest sons, Eric Trump and Donald Trump Jr., on board in March. 

Why are Democrats investigating Trump? 

Democratic Senators and Representatives have opened multiple investigations into the Trump family’s financial ties to the crypto industry.

Senator Elizabeth Warren (D-MA) is investigating a $314 million purchase of 16,000 Bitmain mining machines by American Bitcoin Corp., a company connected to Eric Trump.

Cryptopolitan previously reported on her request to the Commerce Department for records on communications between Bitmain, Eric Trump, Donald Trump Jr., and agency officials. Warren intends to determine whether national security decisions at the Commerce Department have been influenced by firms with Trump family business ties. 

Representative Maxine Waters, the ranking Democrat on the House Financial Services Committee, launched a separate investigation into the Kansas City Federal Reserve Bank for granting crypto exchange Kraken a limited-purpose master account. 

Senator Richard Blumenthal (D-CT) is demanding records about why the Securities and Exchange Commission (SEC) dropped fraud charges against Justin Sun, a major investor in the Trump family’s World Liberty Financial platform. 

Blumenthal’s letter to SEC Chairman Paul Atkins also pointed out that the SEC’s top enforcement official, Margaret Ryan, left the agency shortly before the case against Sun was dismissed. 

Cryptopolitan previously covered the joint efforts of Senators Warren, Adam Schiff, and Blumenthal to investigate the memecoin conference held at Mar-a-Lago, which was only open to the largest holders of the $TRUMP token.

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