A new Wall Street Journal investigation highlights a $500 million crypto deal involving Donald Trump and a top member of the United Arab Emirates royal family. According to the newspaper, Trump-linked entities divested nearly half of the family's crypto joint venture days before his second inauguration, in a transaction that was not made public at the time. Lawmakers and ethics experts are now investigating whether the deal may have created conflicts of interest related to subsequent U.S. policy decisions.
In brief
- WLFI sold a 49% stake for $500M days before the inauguration, with the majority of the initial funds directed to Trump-linked entities.
- A UAE investor secured seats on WLFI's board, while executives affiliated with G42 joined the company's governance.
- After the deal, WLFI sought a national trust banking charter as Trump-linked crypto businesses continued to expand.
- Surveillance intensified after the United States approved mass exports of AI chips to the UAE, some of which were reportedly destined for G42.
Trump-linked WLFI crypto sale distributed millions among insiders
The deal involved World Liberty Financial (WLFI), a crypto company attached to Trump's business network. The transaction was finalized four days before the start of his second term. The buyer was Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and a central figure in the country's investment management. The operation was carried out via an Abu Dhabi-based investment vehicle, Aryam Investment 1.
According to the terms of the agreementAryam Investment 1 acquired a 49% stake in WLFI for $500 million. Half of this amount, or $250 million, was paid in advance. Financial documents viewed by the Journal show that about $187 million of that initial payment was transferred directly to two Trump-linked entities: DT Marks DEFI LLC and DT Marks SC LLC.
The remaining funds were distributed among other project participants. About $31 million was paid to companies associated with the family of Steve Witkoff, a real estate developer who co-founded the joint venture and was later named U.S. special envoy to the Middle East. Another $31 million was awarded to the project's other co-founders, Zak Folkman and Chase Herro.
WLFI's $500 million UAE contract raises conflict concerns
The transaction included the following:
- A valuation of $500 million for WLFI.
- A 49% stake sold to a foreign investment vehicle.
- $250 million paid up front via private crypto-related entities.
- With most of the initial revenue going to Trump-linked companies.
Two senior executives from Aryam Investment have joined WLFI's five-member board of directors. Both also hold senior positions at G42, a major artificial intelligence company controlled by Sheikh Tahnoon. Alongside Eric Trump and Zach Witkoff, their appointments gave the UAE-linked investor direct influence over the company's operations.
Since the transaction, WLFI has applied for a national banking trust charter, which would place it under federal supervision. At the same time, Trump-affiliated companies continue to expand into the cryptocurrency sector, including through American Bitcoin, a crypto mining company, as well as continued revenue streams tied to $Trump memecoins and other digital assets.
Lawmakers Question AI Chip Exports Following Trump-Linked Crypto Investment
Surveillance has increased after several developments in American policy on artificial intelligence. Under President Joe Biden's administration, exports of advanced U.S.-made AI chips were strictly limited, out of concern that they would indirectly benefit China. After Trump returned to power, and shortly after the UAE's investment was disclosed, the United States approved a deal allowing the UAE to purchase approximately 500,000 advanced AI chips per year.
Analysts say such volume could support one of the world's largest AI data center networks. According to several reports, almost 20% of these chips were attributed to G42, the same company overseen by Sheikh Tahnoon.
The succession of these events sparked criticism from lawmakers. Senator Elizabeth Warren and other officials have called for official investigations into whether the crypto deal may have influenced US policy decisions. Ethics experts believe that interweaving the personal financial interests of a sitting president with those of a foreign official constitutes a major conflict of interest.
Democrats on the House Oversight Committee relayed these concerns in a report titled Professionalized Corruption. The document claims that the Trump family allegedly used digital asset structures to accept what it describes as “backdoor corruption,” believing that crypto payments mask the origin of funds and the identities of beneficiaries.
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