Analysis: By launching his own cryptocurrency and initiating DOGE cuts, is Trump assisting cybercriminals?

Digital assets, AI scams, and deregulation – how Trump’s crypto moves could open the door to financial crime

The Trump administration’s support of cryptocurrencies, coupled with its willingness to slash government spending through Elon Musk’s controversial Department of Government Efficiency (DOGE), is igniting fresh concerns about fraud, consumer protection, and regulatory loopholes. Despite once dismissing Bitcoin as a “scam”,Donald Trump has now embraced digital assets, and even launched his own coin, $TRUMP, in the run-up to his second inauguration, as well as one for his wife, $MELANIA. The move has fuelled speculative trading and inspired more than 700 copycat tokens, many of which appear designed to deceive investors.

Once taking power, Trump’s administration greenlit sweeping cuts to the Consumer Financial Protection Bureau (CFPB) through Musk’s DOGE initiative. The move has sparked fears that consumer safeguards against financial crime – including crypto scams – are being carelessly dismantled.

Experts warn that these developments could create a perfect storm for fraud. “Trump’s cryptocurrency has legitimised a highly speculative sector, but at the same time he’s potentially reducing the very protections that keep consumers safe,” says Jo Whalley, Director at bigspark. “This isn’t just about hype – it’s about handing cybercriminals a golden opportunity.”

A playground for scammers

The launch of Trump’s own coin triggered a frenzy in the crypto market. Within hours, scam artists began exploiting the hype by flooding the space with tokens falsely claiming an official connection to Trump or his family. Some bore names like Official Trump and Official Melania, while others mimicked Trump’s actual token in name and symbol. A fake asset seemingly associated with Trump’s youngest son, Barron, is one of the more recent scams.

“This is a textbook example of how crypto scammers operate,” says Jo. “They hijack recognisable names, play on FOMO (fear of missing out), and lure in retail investors who may not fully understand what they’re buying. The sheer volume of fake Trump tokens shows just how easily bad actors can exploit the lack of oversight.”

The issue isn’t limited to Trump’s brand. Scammers have also used Musk’s name to promote fraudulent investments. AI-generated deepfake videos featuring Trump and Musk have circulated online, promising astronomical returns in exchange for cryptocurrency deposits.

“These scams are growing more sophisticated,” Jo adds. “AI allows fraudsters to create highly convincing fake endorsements. If public figures like Trump and Musk aren’t actively warning against this, it’s easy to see why some investors get duped.”

The erosion of consumer protections

Crypto scammers are finding increased opportunities at the same time that important safeguards are being defunded or stripped away. The Trump administration’s decision to grant Musk’s DOGE unprecedented access to the CFPB – a key financial watchdog – has raised alarm bells among financial crime experts. “The CFPB was created to protect consumers from predatory financial practices,” Jo explains. “By slashing its resources and placing it under DOGE, the government is effectively pulling the rug out from under ordinary people.”

The CFPB plays a crucial role in investigating fraudulent financial schemes, including crypto scams. Its weakening could mean fewer resources to track bad actors, enforce penalties, or educate consumers on emerging threats.

“Without strong regulatory oversight, the crypto space becomes a Wild West,” Jo warns. “And when the government itself is endorsing risky assets while defunding consumer protections, we’re sending mixed signals to the public.”

What happens next?

With the value of Trump’s coin fluctuating wildly and copycat scams multiplying, concerns are mounting about market instability and consumer harm. If the administration continues to prioritise deregulation over fraud prevention, investors may face increasing risks.

“A well-regulated crypto market can thrive,” Jo says. “But that requires balance. Right now, we’re seeing regulation being rolled back while new speculative assets are being pumped into the market. That’s a dangerous mix.”

As crypto fraud schemes become more advanced, the responsibility to educate and protect investors grows ever more urgent. Whether Trump’s administration will address these concerns – or whether his own coin is just the beginning of a broader experiment with financial deregulation – remains to be seen.