An investment firm linked to Sheikh Tahnoon bin Zayed Al Nahyan, the National Security Adviser of the United Arab Emirates (UAE), has reportedly signed a substantial contract to invest $500 million in World Liberty Financial, a cryptocurrency venture associated with former President Donald Trump. This deal, which came just days before last year’s presidential inauguration, involves the UAE firm acquiring a 49% stake in the crypto business, with half of the investment paid upfront. Eric Trump is said to have signed the agreement, and reports indicate that $187 million has already been received by entities connected to the Trump family.
The transaction has ignited allegations of “mind-blowing corruption,” with U.S. Senator Chris Murphy and other Democratic leaders voicing their concerns. Murphy highlighted that Trump reversed longstanding national security objections to selling advanced artificial intelligence (AI) chips to the UAE, prompting alarm among national security experts. He noted on social media that prior to the investment, the UAE made undisclosed payments of $187 million to the Trump family and an additional $31 million to the Witkoff Group.
This investment from the UAE coincided with a reported decision to allow the UAE access to purchase significant quantities of AI chips from Nvidia. Just months after the investment, the Biden administration stepped in to block the agreement, citing concerns that these chips could ultimately be directed to China. Sheikh Tahnoon’s AI venture, G42, is poised to buy 20% of the chips involved.
The allegations surrounding World Liberty Financial and Trump are not entirely new. Previously, Trump granted a pardon to Changpeng “CZ” Zhao, co-founder and former CEO of Binance, following a deal related to a stablecoin associated with World Liberty Financial. This maneuver is projected to generate tens of millions of dollars in annual revenue for the firm, which involved another of Sheikh Tahnoon’s companies, MGX.
Compounding the scrutiny, the WLFI token from World Liberty Financial recently faced pay-to-play accusations. Cryptocurrency entrepreneur Justin Sun was reported to have purchased tens of millions of dollars of the WLFI token before a case he faced with the Securities and Exchange Commission (SEC) was paused. Sun claims to be the biggest holder of Trump’s memecoin and attended an event for TRUMP token holders last year, where Trump was also present.
The Trump family has been deeply involved in cryptocurrency ventures, advocating for a favorable regulatory landscape for the industry at the federal level. The recent passage of the GENIUS Act aimed to establish regulatory clarity for stablecoins, while discussions about a national bitcoin reserve continue. Analysts suggest that last year’s crypto-related ventures significantly boosted the Trump family’s fortune by approximately $1.4 billion.
Despite these developments, concerns persist within the cryptocurrency community about the direction of regulatory changes. The withdrawal of Coinbase’s support for the draft version of the CLARITY Act is raising fears among Bitcoin users that they may not receive the protections and exemptions they seek. Moreover, the stark contrast in treatment of various crypto players is evident, as developers of privacy-focused Samourai Wallet are currently serving prison sentences for offenses similar to those of others who have business ties to Trump.
Nevertheless, even in this complex web of cryptocurrency dealings and controversies, there seems to be a limit to Trump’s willingness to engage with certain figures. Disgraced former FTX CEO Sam Bankman-Fried’s attempts to gain favor on social media for a pardon appear to have fallen flat, underscoring the intricate dynamics at play within the intersection of politics and cryptocurrency.
