UAE Royal’s $500M Stake in Trump Crypto Venture Sparks Conflict Concerns Ahead of AI Chip Deal
By Perplexity News Staff
Washington, D.C. – A massive investment by a prominent United Arab Emirates royal into President Donald Trump’s family cryptocurrency firm has ignited fresh scrutiny over potential conflicts of interest, just as the U.S. approved a lucrative deal to supply advanced AI chips to the UAE.
World Liberty Financial, the Trump family’s crypto venture co-owned with Middle East envoy Steve Witkoff and his family, sold a 49% stake worth $500 million to a firm linked to Sheikh Tahnoon bin Zayed Al Nahyan, an Abu Dhabi royal and national security adviser who oversees a vast state investment fund.[1][2] The transaction, detailed in undisclosed corporate documents reviewed by The Wall Street Journal, occurred just four days before Trump’s inauguration in January 2025.[1]
Sheikh Tahnoon, through his investment vehicle Aryam Investment, became the largest shareholder outside the Trump and Witkoff families.[2] The deal included an upfront payment of half the investment, funneling up to $187 million directly to Trump family entities and $31 million to Witkoff family entities on the cusp of the administration’s return to power.[1][2]
Timing Raises Eyebrows Amid AI Chip Approval
The revelations come amid questions about the Trump administration’s decision months later to greenlight the annual export of 500,000 highly advanced American-made AI chips to the UAE – including a portion allocated to Tahnoon’s AI firm, G42.[1][2] This move reversed concerns from the prior Biden administration that such technology could end up in Chinese hands.[1]
Adding to the intrigue, a UAE-backed firm called MGX announced in May 2025 it would use a digital token from World Liberty Financial to fund a $2 billion investment in crypto exchange Binance, providing a significant boost to the Trump venture.[1]
White House and Firm Deny Wrongdoing
White House officials and World Liberty Financial spokespeople have staunchly defended the transactions. David Wachsman, a spokesperson for the crypto firm, told ABC News that “neither President Trump nor Steve Witkoff had any involvement whatsoever in this transaction” and dismissed any link to the AI chip deal as “100% false.”[1]
The White House echoed this, insisting there were no conflicts of interest.[2]
Congressional and Ethics Backlash
The story, first broken by The Wall Street Journal on Saturday and amplified by ABC News’ World News Tonight, has drawn sharp rebukes from lawmakers and ethics watchdogs.[1][3][4]
Sen. Elizabeth Warren (D-Mass.) labeled the arrangement “corruption, plain and simple,” calling for investigations into the opaque deal.[2] Ethics experts cited by the Journal described it as unprecedented: a foreign government official funneling hundreds of millions into a company partially owned by the sitting president, raising profound ethical and national security red flags.[1]
“This has no known precedent,” one expert noted, highlighting risks of foreign influence over U.S. policy decisions.[1]
Broader Context of Trump Family Business Ties
World Liberty Financial has emerged as one of the Trump family’s most profitable endeavors since its launch, capitalizing on the crypto boom and Trump’s pro-business rhetoric.[1][4] The firm’s ties to Middle Eastern investors underscore ongoing questions about the blurring lines between Trump’s personal finances and his administration’s foreign policy.
Sheikh Tahnoon wields enormous influence in the UAE, managing assets through funds like the Abu Dhabi Investment Authority and chairing G42, a key player in the global AI race.[1][2] His stake in World Liberty positions the UAE as a major partner in the Trump-Witkoff enterprise, even as bilateral relations deepen on tech exports.[1]
Critics point to the timing: the investment predated the AI chip approval by mere months, fueling speculation despite official denials.[1][2] Congressional Democrats have signaled intent to probe further, potentially through oversight committees.[2]
Public and Media Reaction
ABC News aired a segment on Sunday evening, with anchor David Muir highlighting the WSJ’s findings and the $187 million influx to Trump coffers.[3][4] The video report emphasized the deal’s secrecy and its implications for government ethics.[4]
Government watchdog groups and transparency advocates have amplified calls for disclosure, arguing that such investments demand blind trusts or divestitures from presidents – norms Trump has historically sidestepped.[1]
Implications for U.S.-UAE Relations
U.S.-UAE ties have strengthened under Trump, with the chip deal exemplifying collaboration on AI amid competition with China.[1] Yet the personal financial angle complicates the narrative, inviting accusations of quid pro quo even absent direct evidence.[1][2]
As investigations loom, the episode revives debates over emoluments clauses and foreign emoluments in the Constitution, which bar presidents from accepting gifts or payments from foreign states without congressional approval.
World Liberty Financial’s rapid ascent – from startup to half-billion-dollar entity backed by Gulf royalty – mirrors the Trump brand’s global appeal but at the cost of heightened scrutiny in his second term.[1]
For now, the administration maintains the deals are arms-length and above board. But with Congress watching and ethics alarms blaring, the story is far from over.
This article is based on reporting from The Wall Street Journal, ABC News, and GV Wire. Additional details may emerge as investigations proceed.