A senior Democrat in the House of Representatives, Jamie Raskin, joined his name to lawmakers seeking answers about President Donald Trump’s recent dinner for top investors in his memecoin, sending questions directly to Trump.

Raskin, the ranking Democrat on the House Judiciary Committee, has been a vocal critic of the president and becomes the latest of many from his party to probe details about the event, which they’ve called out as evidence of White House corruption. Because Raskin is in the minority party, his demands are unlikely to lead to further congressional action unless they regain the House or Senate in next year’s elections.

“I write today to demand that you release the names of all the attendees at this dinner and provide information about the source of the money they each used to buy $TRUMP coins, so that we can prevent illegal foreign government emoluments from being pocketed without congressional consent,” Raskin wrote this week to the president, joining many counterparts in the Senate in seeking the information, including Senators Elizabeth Warren, Chris Murphy and Richard Blumenthal.

“We deserve to know who is paying for access to our president, and what steps you took to ensure that the funds you receive are legitimate and legal, rather than the proceeds from foreign states or monarchs or illegal activities,” Rasking said, specifically highlighting Tron founder Justin Sun, a guest who was a major early investor in Trump’s family crypto operations.

Read More: Democrats Threaten Lawsuits, Join Protests Ahead of Trump Memecoin Dinner

Crypto stocks suffered from red day on Friday, especially Bitcoin

Finance companies like Strategy (MSTR) and Semler Scientific (SMLR) – even if Bitcoin slips slightly over 2%, it’s down about 6% each. Metaplanet, listed in Japan, is down 24%.

Zooming out makes the photo even worse. Changing hands at $376 early Friday afternoon, MSTR stocks are more than 30% below their all-time hit late in 2024, even if Bitcoin falls to a new record this week.

Price action comes amidst the ongoing debate on social media about the sustainability of Michael Saylor (and the person who imitates him) Bitcoin Vacuuming Playbook.

“Bitcoin treasury companies are all the rage this week. MSTR, Metaplanet, 21 people, Nakamoto.” “I think they’re toxic leverage. I’ve had something that’s happened to Bitcoin (and) as it stands for Bitcoin (and).”

According to Lowstrife, the problem is that the financial engineering that other BTC finance companies employ to accumulate more Bitcoin is essentially on MNAV.

As long as the MNAV is above 1.0, certain companies can continue to raise capital and buy more Bitcoin. This is because investors are interested in paying premiums on stock exposures compared to the company’s Bitcoin holdings.

However, if MNAV falls below that level, it means that the company’s value is even lower than the value it holds. This creates serious problems with the ability of a company to raise capital, allowing dividends to be paid to, for example, some of the convertible notes or preferred stocks it may have issued.

GBTC colour

Something similar happened to Grayscale’s Bitcoin Trust, GBTC before converting to ETF. GBTC, the closure end fund in bull markets in 2020 and 2021, traded net asset values ​​at premiums that continue to increase their net asset value as institutional investors sought a quick exposure to Bitcoin.

But when the price went south, its premium transformed into a terrible discount, which began with the capital of three highly leveraged arrows, and ultimately contributed to a series of explosions that spread across FTX. The resulting sales pressure has led to Bitcoin starting from a record high of $69,000 to $15,000 in just a year.

“Like GBTC at the time, the whole game now — the whole thing knows how much BTC these access vehicles will scooped up.

The thread also triggered replies from the CEOs of MSTR Bulls, Adam Back, Bitcoin OG and Blockstream.

“If MNAV <1.0, they can sell BTC and buy back MSTR and increase their BTC/share like that. "Or people should see it coming and don't let them go there. Either way, this is fine."