Over the weekend, President Donald Trump pulled what Peter Schiff is calling “the biggest crypto rug pull of all time.” Schiff, who is a longtime gold lover and crypto hater, took to X (formerly Twitter) on Tuesday to accuse Trump of orchestrating a pump-and-dump scheme with his announcement of a US strategic crypto reserve.

The announcement sent crypto prices soaring—only for us to see them crash hours later. Schiff is now calling for a Congressional investigation into the entire situation, demanding to know who wrote those posts, who knew about them in advance, and who cashed in before the market tanked.

Schiff demands answers on alleged pump-and-dump scheme

Bitcoin, Ether, Cardano, XRP, and Solana (the tokens Trump mentioned will be in the reserve) had seen some gains on Sunday. But by Monday, Bitcoin had tumbled 8%, sitting around $86,000, while Ethereum plunged 15% to $2,100.

Crypto stocks followed suit, with Coinbase falling 4.6% and Robinhood dropping 6.4%. Even MicroStrategy, which initially rallied 14%, reversed course to close down 1.8%.

In his post, Schiff said, “How much money those with advance notice spent buying XRP, ADA, SOL, BTC, and ETH, and if they sold, the exact timing of those sales, and the proceeds received?”

“We also need all emails or text messages that involve any members of the President’s staff, his or their family or friends, his campaign donors, or Truth Social employees, that relate to either of the two Sunday Truth Social posts,” said Schiff.

As if that wasn’t enough, Schiff pointed out that despite Trump’s Ethereum hype, Ethereum ETFs still hit record lows, sinking 40% since their launch eight months ago and sitting 49% below their December 2023 highs. “The worst part for investors is that ETH still has a long way to fall,” Schiff warned in a different post.

Schiff is also coming for Strategy’s Michael Saylor, who is a Bitcoin maxi. In yet another post, he said, “Saylor claims the U.S. government should buy Bitcoin as it will be the best performing asset in the world. He says it’s certain the price will rise 100X over time. If that’s true, why does the government have to buy it at all? Just let Americans buy it themselves and get rich.”

Meanwhile, the White House is staying quiet on the controversy. But David Sacks, Trump’s artificial intelligence and crypto czar, teased “more to come” at the upcoming White House Crypto Summit on Friday.

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Source: https://www.cryptopolitan.com/peter-schiff-calls-crypto-reserve-rug-pull/