Simply put
- Right before Trump’s inauguration, a company connected to the UAE decided to purchase a 49% stake in World Liberty Financial, a cryptocurrency firm linked to Trump.
- The Wall Street Journal notes that a significant portion of the funds went to Trump and the Witkoff family’s organizations.
- This agreement precedes a shift in U.S. policy that will grant the UAE increased access to advanced AI chips.
A company associated with Sheikh Tahnoun bin Zayed from the UAE has reportedly agreed to invest $500 million to acquire a 49% stake in World Liberty Financial, a cryptocurrency business tied to former President Trump. This deal was finalized just four days before Trump took office, as reported by the Wall Street Journal.
The report indicates that a large share of the revenue benefitted Trump and the Witkoff family, happening just before the Trump administration expanded the UAE’s access to advanced U.S. AI chips, a privilege that had been restricted during Biden’s term.
The primary agreement was signed by Eric Trump, representing the family’s cryptocurrency and decentralized finance project, World Liberty Financial.
This was done through an investment vehicle associated with Sheikh Tahnoun bin Zayed Al Nahyan, who serves as the UAE’s National Security Adviser and is a member of the royal family.
The deal enabled the UAE-linked firm to become the largest outside shareholder in the cryptocurrency company, with approximately $187 million allocated to Trump family businesses and at least $31 million to firms connected with the Witkoff family, according to the Wall Street Journal.
The White House did not immediately respond to requests for comments.
This development arrives less than a year after Congress has been introducing significant legislation that could reshape the crypto market structure.
“This is corruption, plain and simple,” remarked Sen. Elizabeth Warren, who is a prominent member of the Senate Banking, Housing and Urban Affairs Committee. “The Trump Administration must reverse its decision to sell sensitive AI chips to the United Arab Emirates.”
Sen. Warren has called for her appointees, including Steve Witkoff and other Trump administration officials, to testify before Congress regarding allegations that they compromised national security for the benefit of the president’s cryptocurrency enterprises.
She emphasized that there should be an investigation into whether any officials benefited personally from this arrangement, asserting that Congress “needs to stand tall and stop President Trump’s crypto corruption.”
This follows a request for an investigation initiated last December to examine the extent of Trump and his family’s cryptocurrency dealings with the UAE.
“Fake gift”?
Critics are expressing concerns about how President Trump’s personal and family connections to cryptocurrency ventures might blur the boundaries between policymaking and private financial interests, especially now that the government supports cryptocurrency regulation.
Some have raised eyebrows about the nature of the Trump family’s business with the regulations moving forward.
Andrew Rossow, a public relations lawyer and CEO of AR Media Consulting, noted that the financial arrangement resembles a “subscription for access to an insurance policy.”
He pointed out that the “four-day grace period” during which the UAE deal was signed serves as a major red flag, as congressional committees typically cite impending policy changes as a basis for subpoenas.
Rossow stated, “When a company without revenue or a viable product sells 49% of its shares for $500 million, it strongly suggests this doesn’t meet the ‘arm’s length’ standard, and may instead be a ‘disguised gift’ that bypasses traditional campaign finance and gift limitations.”
He explained that the Committee on Foreign Investment in the United States (CFIUS) can review foreign investments in U.S. businesses that might impact national security.
Legal principles dictate that foreign officials cannot receive benefits from foreign entities without congressional approval. Yet, courts have struggled with whether market-value transactions fall under prohibited compensation, a recurring issue seen during Trump’s first term.
While World Liberty Financial operates as a cryptocurrency firm, its connections to Trump and his family, combined with the use of stablecoins for transactions with the UAE, raise questions about whether they represent “targeted transactions,” potentially creating a financial dependency that could compromise the president’s independence on UAE-related security matters.
