The UAE-backed government fund said it would use cryptocurrency supported by President Trump's family as part of its $2 billion purchase of minority stakes in the scandal-based digital currency exchange vinance. Movements that can lead to multiple conflicts of interest.
The deal was announced on Thursday between Abu Dhabi-backed MGX and Binance, the world's largest crypto exchange. It is carried out using digital currency It was created by World Liberty Financial, the Trump family's cryptocurrency company.
Zach Witkoff, founder of World Liberty Financial, told people attending the Crypto Conference in Dubai that he was told by the company's Stablecoin, USD1, Used in trading.
Witkoff was speaking on stage with Eric Trump at Token2049, one of the largest global cryptocurrency rally with an estimated viewer of over 10,000 industry participants.
The agreement provides a significant financial growth to World Liberty Financial, a decentralized financial (DEFI) platform established in 2024.
Donald Trump serves as the company's “Chief Crypto Advocate,” with his sons Eric Trump and Donald Trump Jr. holding the title “Web3 Ambassador.”
Baron Trump is listed as the “defi visionary” for the project.
The company was co-founded by Zach Witkov, son of Steve Witkov, a real estate developer and Trump associate who is currently the president's envoy for peace negotiations in the Middle East and Russia.
Defi is a type of financial system that operates on the Internet using blockchain technology. Without relying on traditional banks and financial institutions as intermediaries.
“President Trump's assets lie in the trust his children manage. There is no conflict of interest,” White House spokeswoman Anna Kelly told the Post.
MGX, Binance and Zach Witkoff were unable to comment immediately.
“We appreciate MGX and Binance for their trust in us,” Witkoff said on the panel. “That's just the beginning.”
MGX's involvement – chaired by Sheikh Tanoon bin Zayed Al Nahyan, the national security adviser to the United Arab Emirates and brother of the federal president, Sheikh Tanoon bin Zayed Al Nahyan – further emphasizes the geopolitical implications.
Sheikh Tanoon recently held a high-level meeting in Washington with President Trump and administration officials.
Using Trump-backed coins in state-oriented investment transactions raises questions about favorability, influence and the integrity of US foreign policy.
The role of Binance Add another layer of controversy.
In 2023, the exchange pleaded guilty to violating the Anti-Money Laundering Act and was placed under federal supervision by the Treasury Department.
Its founder, Changpeng Zhao, has served in federal prison for four months and is reportedly seeking pardon from the Trump administration.
The company's involvement in a deal that conveys billions of dollars through Trump-related coins draws scrutiny when Zhao's future relies in part on White House decisions.
World Liberty's business model benefits directly from transactions.
Stablecoin issuers like World Liberty earn a return by investing in deposits received in exchange for digital tokens.
With potentially $2 billion being played, Trump's family and his partners can win tens of millions of dollars each year from interest alone.
Since launching World Liberty in September 2023, the Trump family has raised $550 million from the sale of $WLFI tokens.
Buyers also raise ethical and legal concerns, including foreigners who are prohibited by law from contributing to American political campaigns.
Eric Trump took advantage of the opportunity to promote the development of a new Trump brand in the UAE and quickly corrected Witkoff when he proposed that USD1 could one day be used at Four Seasons hotels.
“I'm not going to step into the Four Seasons using USD1,” Eric said. “You're going to walk to the Trump International Hotel and the Tower.”
President Trump is preparing to visit the states to Saudi Arabia, Qatar and the United Arab Emirates.
