Government shutdown, White House demolition: Trump's $300 million "private dinner room" and its crypto backer

The Trump family’s crypto business has generated more than $1 billion in pre-tax profits in the past year.

Author: Dingdang

Original article by Odaily Odaily

Cover: Photo by Harold Mendoza on Unsplash

While the US government was shut down, excavators in the East Wing of the White House were working day and night.

US President Trump personally approved this massive demolition project, not for national security or to "make America great again," but to build an 80,000-square-foot privately funded banquet hall next to the White House.

A "demolition and reconstruction" ceremony

Built in 1942, the East Wing of the White House was originally a symbolic entrance to the institution and power: the First Lady's office, the White House Military Affairs Office, and the Social Secretariat were all housed in that understated yet solemn building. For decades, it was the first door for countless visitors to enter the heart of American power. Now, that door is temporarily closed. Last month, the White House announced an indefinite suspension of all public tours, citing construction work in the banquet hall.

Back in August, Trump proposed building a new banquet hall at the White House. At the time, he stated that the new banquet hall would "be next to, but not touch" the existing building. On October 22nd, he personally confirmed in the Oval Office: "To do this job properly, we must demolish the existing structure," because after consulting with architects, they found that demolishing the entire East Wing of the White House would be more effective than partial demolition. Otherwise, it would damage the new banquet hall, a "very, very expensive, beautiful building." As he spoke, a model of the White House was placed on the table in front of him, and he himself was holding a rendering of the White House banquet hall.

As a result, the new banquet hall, originally planned to accommodate 650 people, was eventually expanded to accommodate nearly 1,000 people, and the cost rose from the initial $200 million to "around" $300 million. A White House spokesperson stated that the East Wing "as a whole" will ultimately be "modernized and rebuilt."

Where does the money come from?

This is not a federal budget expenditure, but a "private crowdfunding" effort. Trump stated that the $300 million cost will not be borne by taxpayers, but by private donors, including himself.

That makes sense, considering that according to the latest investigation by the Financial Times, the Trump family's crypto business has generated over $1 billion in pre-tax profits in the past year. If unrealized gains are included, their net worth could increase by billions of dollars. Given such financial power, the donation is likely just a public relations expenditure for "making a name for themselves in history."

Last week, Trump hosted a dinner to raise funds, claiming he had received donations from some "generous patriots and amazing American companies." According to the list of donors released by the White House on October 23, the list includes some of America's largest technology companies, including Amazon, Apple, Google, Meta, and Microsoft. Google's YouTube has agreed to pay over $20 million to the project. In addition, defense and telecommunications giants such as Lockheed Martin, Comcast, T-Mobile, and Palantir are also on the list.

More notably, the crypto industry also made it onto the White House's donation list . Ripple, Tether America, Coinbase, and the Winklevoss brothers (Cameron and Tyler appear on the list separately) are all included. Ripple has become a symbol of "anti-regulation" in the crypto industry due to its protracted legal battle with the SEC; Coinbase, on the other hand, has long been involved in lobbying efforts to gain a "legitimacy" label.

For the past decade, the crypto industry has touted itself as a "decentralized revolution," opposing the monopolies of traditional power. Now, they've entered a corner of history with a "donation," and proven with a bill that the decentralized future ultimately still needs a center.

Of course, not everyone is happy about the reconstruction. "In my opinion, this enormous banquet hall is a moral nightmare," said Richard Paynet, a senior lawyer who served as White House legal counsel in the Bush administration. "It's about using access to the White House to raise money... These companies all have something to ask of the government."

The brick walls of the White House East Wing are crumbling, and the foundation stone for a new hall is being laid. In this "reconstruction ceremony," new investors are entering the scene. The rules of the game in Washington haven't changed—only this time, crypto capital has finally secured its place.

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