American Bitcoin, a cryptocurrency firm co-founded by Eric and Donald Trump Jr., has agreed to pay $2.5 million to settle Justice Department allegations regarding an improper pandemic loan.

Key Points

• American Bitcoin settled claims that its subsidiary, Gryphon Digital Mining, wrongfully obtained a $2.2 million Paycheck Protection Program loan.
• The Small Business Administration deemed the loan ineligible because Gryphon operated as a cannabis industry software provider at the time of issuance.
• Although the SBA initially forgave the loan in 2021, the agency reversed that decision in 2024, prompting a federal investigation.
• The settlement amount of $2.5 million exceeds the original loan value, covering both the principal and additional resolution costs.
• American Bitcoin inherited the legal liability for the dispute following its merger with Gryphon Digital Mining last September.

Why it Matters

This settlement resolves a significant legal contingency for a high-profile company linked to the Trump family. By finalizing the agreement, the firm mitigates ongoing regulatory uncertainty while continuing to report record cryptocurrency production to its shareholders.