A major investment tied to President Donald Trump’s crypto venture, World Liberty Financial, has drawn renewed scrutiny after a report revealed that a senior member of the Emirati royal family quietly acquired a large ownership stake just days before Trump returned to the White House.
According to a recent Wall Street Journal report, an entity connected to Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi bought a 49% stake of WLF for $500 million in January, shortly before Trump’s inauguration. WLF is partly owned by the Trump family, along with Steve Witkoff, who later became the administration’s Middle East envoy.
The timing of the deal has raised concerns because several months later, the Trump administration approved the sale of advanced U.S.-made AI chips to the UAE. The technology had previously been withheld under the Biden administration amid fears it could be diverted to China, potentially threatening American security interests.
WLF confirmed the transaction but rejected any suggestion of improper conduct. Company spokesperson David Wachsman said neither Witkoff nor Trump participated in the negotiations and denied any link between the transaction and U.S. policy decisions.
Wachsman added that the company raised capital to support growth and argued it should not be judged by standards different from those applied to other privately held American firms.
The White House echoed that position, with Counsel David Warrington stating that the president does not take part in private business dealings that intersect with his constitutional duties and performs his role in a manner consistent with ethical standards. It maintains that Trump’s assets are held in a blind trust managed by his children and insists he acts solely in the public interest.
Still, the Journal’s reporting highlighted additional connections that complicate the picture. Shortly before the chip sale was announced last year, an Emirati-backed investment firm, MGX, disclosed plans to use a digital token issued by WLF to fund a $2 billion investment in Binance. Sheikh Tahnoon, who is also the brother of the UAE president, serves as MGX’s chair.
MGX also holds a 15% stake in the new U.S. joint venture operating TikTok, further underscoring its expanding footprint in sensitive sectors of the American economy.
Security analysts have warned that transferring high-end AI chips to the Gulf state carries risks. Peter Wildeford of the nonpartisan AI Policy Network said such technology could narrow the U.S. lead in AI if it reached China. He cautioned that large-scale access could enable cyber operations or advanced weapons development that would challenge American defenses.
Ethics specialists say that they cannot recall a comparable situation involving a sitting president and a foreign official directing such large sums into a business tied to the Oval Office. They warn that the arrangement raises unresolved ethical and national security questions.
Meanwhile, Democratic lawmakers reacted sharply to the report, with Senator Chris Murphy describing the revelations as staggering corruption. Senator Elizabeth Warren called the deal plainly corrupt, while Senator Chris Van Hollen accused foreign governments of using money to influence U.S. policy.
The wider crypto industry, including firms like MicroStrategy Inc. (NASDAQ: MSTR), hopes that these concerns don’t impact the reputation of the crypto industry at such a time when the industry is lobbying hard to have enabling laws passed to guide further growth and investment within the industry.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
The White House is set to hold talks with leaders from the crypto and banking…
Severe winter weather in Washington has forced senators to postpone a key vote on legislation…
The U.S. SEC has agreed to drop an enforcement action against a crypto exchange founded…
Forward Industries recently provided an update on the company’s SOL Treasury, including that the total…
Senate Democrats moved to reshape a major crypto bill by introducing a series of new…
A long-anticipated effort to set federal rules for crypto stalled last week after the Senate…