Major conflict of interest issues have been flagged following plans by a United Arab Emirates-backed government fund to use the Trump family cryptocurrency to pay for a $2 billion minority stake in the scandal-ridden digital currency exchange Binance.
It’s understood that a deal between Abu Dhabi-backed MGX and Binance - the world’s largest crypto exchange - will be conducted using a digital currency created by World Liberty Financial, the Trump family’s cryptocurrency firm.
Zach Witkoff, a founder of World Liberty Financial, told attendees at a crypto conference in Dubai that the firm’s stablecoin, USD1, will underpin the deal.
The deal will deliver a major material benefit to World Liberty Financial - a decentralised finance (DeFi) platform founded in 2024 – where U.S. President Donald Trump serves as the company’s chief crypto advocate.
Donald Trump’s sons, Eric Trump and Donald Trump Jr also hold the title of Web3 ambassador, while the President’s youngest son Barron Trump is listed as the project’s “DeFi visionary."
DeFi is a type of financial system that uses blockchain technology to sidestep traditional banks or financial institutions as middlemen.
Added to potential conflicts of interest are revelations that Witkoff is the son of Steve Witkoff, a real estate developer and Trump associate who is currently serving as the president’s envoy to peace talks in the Middle East and Russia.
While MGX, Binance and Zach Witkoff are yet to comment on conflict of interest issues, White House spokeswoman Anna Kelly deflected the allegations, claiming that “President Trump’s assets are in a trust managed by his children.”
Underscoring the geopolitical implications of this deal – which question U.S. foreign policy integrity - are revelations that the Abu Dhabi-backed company MGX is chaired by Sheikh Tahnoon bin Zayed Al Nahyan.
As well as being the UAE's national security adviser, Sheikh Tahnoon is also the brother of the federation’s president, Sheikh Mohamed bin Zayed Al Nahyan.
Foreign policy implications aside, Trump’s involvement with the crypto exchange Binance is also raising eyebrows.
In 2023, the exchange pleaded guilty to violating anti-money-laundering laws and was placed under federal oversight by the Treasury Department.
Having served four months in federal prison, Binance founder Changpeng Zhao is understood to have sought a pardon from the Trump administration.
What remains unclear is whether the recently announced deal – that plans to funnel billions through a Trump-linked coin – can proceed unless a White House for Zhao is forthcoming.
Assuming the deal proceeds, the Trump family and its partners are expected to receive tens of millions of dollars annually from interest alone.
Since kicking off World Liberty in September 2023, the Trump family has raised $550 million from the sale of $WLFI tokens — with a portion of the proceeds flowing to a Trump-controlled entity.
At the time, ethical and legal concerns were also raised given that some purchasers included foreign nationals barred by law from contributing to American political campaigns.
Today’s deal pre-empts plans by the U.S. President to travel to Saudi Arabia, Qatar and the U.A.E. on a state visit in two weeks.
