A brokerage connected to the family of US President Donald Trump is facing questions from US lawmakers after helping several Chinese companies enter American stock markets.
Lawmakers Focus on Suspicious Trading After Chinese IPOs
The committee is reviewing cases where newly listed Chinese companies experienced sudden price spikes shortly after entering the US markets.
In a congressional letter, multiple trading accounts allegedly placed similar buy orders above the IPO price. These trades temporarily pushed share prices higher.
After the spike, insiders reportedly sold large amounts of stock. Prices later collapsed, leaving many retail investors with losses. This pattern is sometimes described by regulators as a coordinated stock manipulation strategy.
Regulatory filings with the U.S. Securities and Exchange Commission show that Dominari has participated in several corporate fundraising deals.
One example involves work connected to Thumzup Media Corporation, which later adopted a treasury strategy involving Bitcoin.
Why Trump Family Ties With Dominari?
Dominari Securities operates under Dominari Holdings and runs its offices from Trump Tower in Manhattan.
Public filings show that Eric Trump holds a significant stake in the company. Earlier this year, both Eric Trump and Donald Trump Jr. joined the firm’s advisory board.
Because of these ties, the brokerage has drawn additional attention after lawmakers began examining the role of Wall Street underwriters involved in listing small Chinese companies in US markets.
Billions Lost by US Investors in Recent Years
Lawmakers say the scale of the problem has grown rapidly. According to figures cited in the congressional review, similar stock schemes may have drained roughly $16 billion from US investors since 2023.
The Federal Bureau of Investigation has also recorded a sharp increase in complaints linked to these cases. Reports connected to stock manipulation involving foreign issuers have increased by about 300%.
These trends have raised broader questions in Washington about how overseas companies gain access to US capital markets.
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