Foreign-linked investment in WLF raises conflict-of-interest and national security questions.
United Arab Emirates-linked investment firm purchased a 49% stake in World Liberty Financial, the Trump family-affiliated cryptocurrency company, for roughly $500 million.
The deal came just four days before President Donald Trump’s second inauguration, according to a Wall Street Journal investigation.
The agreement, signed by Eric Trump, reportedly allocated $187 million to Trump family entities and at least $31 million to the Witkoff family, co-founders of the company.
Trumps and Witkoffs Cash Out
World Liberty Financial, which was co-founded by members of the Trump family and Steve Witkoff, a close business associate and U.S. Middle East envoy, has positioned itself as a fintech platform expanding into cryptocurrency and governance tokens.
Since the investment, the company says it has grown significantly and recently launched a new token, WLFI, while Trump and Witkoff are now listed as “emeritus” co-founders.
Timing Raises Questions on AI Chip Sale
The Wall Street Journal, citing sources and company documents, reported that the buyers were close associates of Sheikh Tahnoon bin Zayed Al Nahyan — a UAE royal, head of the country’s largest wealth fund, and national security adviser, a position that gives him authority over the nation’s intelligence and security operations.
An investment entity linked to Sheikh Tahnoon quietly acquired a 49% stake in World Liberty Financial for $500 million just days before Donald Trump’s inauguration last year.
The deal came months before the Trump administration approved the sale of advanced U.S. AI chips to the UAE, technology that the Biden administration had previously blocked over national security concerns tied to Sheikh Tahnoon’s AI firm, G42.
Conflict-of-Interest Concerns
The deal has prompted questions about potential conflicts of interest, given the UAE investors’ ties to Sheikh Tahnoon bin Zayed Al Nahyan, the country’s national security adviser and manager of its largest wealth fund.
Two senior officers from Sheikh Tahnoon’s entities joined World Liberty’s board as part of the transaction.
Company spokespeople stressed that neither Trump nor Witkoff were involved in the transaction, and the decision was driven by business considerations, denying any connection to U.S. policy decisions on advanced technologies.
The White House and company representatives emphasized compliance with ethics rules and the separation of Trump’s business interests from presidential duties.
Ethics and Transparency Under Scrutiny
Nevertheless, Democratic lawmakers criticize the deal as unprecedented and raise concerns about foreign influence in a company tied to a sitting president.
Senator Elizabeth Warren is demanding Congress compel Steve Witkoff, David Sacks, and Howard Lutnick to testify, calling the Trump family’s crypto dealings blatant corruption.
Why This Matters
When a foreign-intelligence-linked official acquires a stake in a company tied to a sitting president, it poses a clear risk of conflicts of interest and foreign influence. Even without direct evidence of interference, the deal exposes a major vulnerability where private financial ties intersect with national power.
Check out DailyCoin’s popular crypto news today:
Bitcoin Tests $75,000 as Risk-Off Trade Sweeps Crypto
Hedera’s U.S. Government Inroads Put HBAR in a Different League
