US lawmakers have officially launched a probe into three Wall Street brokerages, including Dominari Securities—a firm with direct ties to the Trump family—over their involvement in underwriting Chinese companies accused of orchestrating massive stock manipulation schemes. The investigation centers on whether these firms facilitated "ramp-and-dump" operations that have cost American investors billions.

Why is the House Select Committee on China investigating these firms?

The House Select Committee on China, led by Representative John Moolenaar and Rep. Ro Khanna, issued formal inquiries to Dominari Securities, D. Boral Capital, and Revere Securities. The core allegation is that these firms acted as intermediaries for Chinese shell companies that utilized US initial public offerings (IPOs) to artificially inflate share prices before offloading them onto unsuspecting retail investors.

According to the official correspondence from the committee, the pattern often involved:

  • Coordinated Buy Orders: Dozens of accounts placing near-identical orders above IPO prices to create an illusion of high demand.
  • Price Inflation: Rapid, artificial valuation spikes following the IPO.
  • The "Dump": Insiders selling their stakes at the peak, leading to a total collapse in share price and massive losses for retail participants.

What is the link to the Trump family?

Dominari Securities, which operates out of Trump Tower in New York, has drawn significant scrutiny due to its ownership structure. Eric Trump, son of President Donald Trump, is the fourth-largest shareholder of Dominari Holdings. Furthermore, both Eric Trump and Donald Trump Jr. joined the company's advisory board in February 2025.

While the probe focuses on the firm's underwriting practices, the association with the Trump family adds a layer of political sensitivity. Notably, Dominari previously facilitated fundraising for Thumzup, a public entity that made headlines for adopting a Bitcoin ($BTC) treasury strategy—a move that also saw investment from Donald Trump Jr.

How much capital has been lost in these schemes?

Lawmakers are treating this as a systemic issue rather than isolated incidents. The scale of the alleged fraud is significant:

MetricData Point
Estimated Investor Losses (since 2023)$16 Billion