An investment firm linked to the United Arab Emirates acquired nearly half of a Trump family–backed cryptocurrency company in a deal valued at roughly $500 million, just four days before President Donald Trump’s second inauguration, according to a report published Sunday by The Wall Street Journal.
The transaction granted the Emirati-backed firm a 49% stake in World Liberty Financial, a crypto venture co-founded by members of the Trump family and Steve Witkoff, the president’s top Middle East envoy. The agreement was signed by Eric Trump, according to the report.
Details of the Investment and Beneficiaries
The Journal cited sources and company documents indicating that the buyers were associates of Sheikh Tahnoon bin Zayed Al Nahyan, a senior UAE royal, the country’s national security adviser, and the head of its largest sovereign wealth fund.
Under the terms of the deal, the investors paid upfront. Approximately $187 million went to Trump family entities, while at least $31 million was paid to entities connected to the Witkoff family.
The timing and structure of the deal have fueled concerns about potential conflicts of interest, given the involvement of foreign government–linked figures and the proximity to Trump’s return to office.
White House Rejects Conflict-of-Interest Claims
The White House moved quickly to dismiss allegations of impropriety.
“President Trump only acts in the best interests of the American public – which is why they overwhelmingly re-elected him to this office, despite years of lies and false accusations against him and his businesses from the fake news media,”
White House spokesperson Anna Kelly said in a statement Sunday.
She added that Trump’s assets are held in a trust managed by his children and that
“there are no conflicts of interest.”
Witkoff’s Role and Ethics Assurances
In a separate statement to CNN, White House counsel David Warrington said Witkoff has complied fully with government ethics rules.
“As Special Envoy for Peace Missions, he has not and does not participate in any official matters that could impact his financial interests,”
Warrington said, adding that Witkoff had divested from World Liberty Financial, despite being willing to recuse himself if necessary.
Company Denies Political Influence or Government Ties
A spokesperson for World Liberty Financial confirmed the investment to CNN but emphasized that neither President Trump nor Witkoff played any role in the transaction.
“Neither President Trump nor Steve Witkoff had any involvement whatsoever in this transaction and have had no involvement in World Liberty Financial since taking office,”
said company spokesperson David Wachsman.
The Journal also reported that, as part of the agreement, two senior executives from companies backed by Sheikh Tahnoon joined World Liberty’s board shortly after the UAE royal sought U.S. access to advanced artificial intelligence chips. Wachsman strongly denied any connection between the investment and U.S. government policy.
“Any claim that this deal had anything to do with the Administration’s actions on chips is 100% false,”
Wachsman said, accusing media outlets of promoting “baseless innuendo.”
Business Rationale and Company Growth Claims
Wachsman said the investment was driven solely by commercial considerations and rejected the idea that the company should be held to a higher standard because of its political associations.
“We made the deal in question because we strongly believe that it was what was best for our company as we continue to grow,”
he said.
“The idea that a privately-held American company should be held to some unique standard … is both ridiculous and un-American.”
The company said that since the investment, World Liberty Financial has grown substantially and would now be valued well above the original transaction level, claiming it ranks among the fastest-growing fintech platforms globally.
An Unprecedented Foreign Stake in a President’s Business
Despite those assurances, the deal stands out as unprecedented in modern U.S. politics, involving a foreign government–linked official taking a substantial ownership stake in a company tied to the family of a sitting president.
World Liberty Financial has recently launched a new governance token, WLFI. Although Trump and Witkoff are now listed as “emeritus” co-founders, their sons continue to promote the company internationally—even as President Trump has vowed to make the United States the “crypto capital of the planet.”
Administration Defends Family Business Activities
Deputy Attorney General Todd Blanche defended the arrangement, arguing that similar situations existed under prior administrations.
“President Trump has been completely transparent when his family travels for business reasons,”
Blanche said on ABC’s This Week.
“There’s nothing unprecedented about the Trump Organization going out and trying to make investments.”
Democrats and Former Officials Sound Alarm
That defense has been sharply criticized by Democrats and former government officials, who accuse the Trump family of blurring the line between public office and private profit.
Former Obama administration official Richard Stengel described the agreement as corrupt.
“The level of corruption is mind boggling, shameless, and unprecedented,”
Stengel wrote on social media.
“Never before has a foreign government official taken a major ownership stake in an incoming U.S. president’s company.”
Democrats on the House Foreign Affairs Committee echoed those concerns, accusing Trump of enriching his family while in office.
“Trump has wasted no time in his second term enriching himself and his family off the presidency,”
the committee said in a statement.
Calls for Congressional Scrutiny
Sen. Elizabeth Warren called for congressional oversight, labeling the deal “corruption, plain and simple.”
“Congress needs to grow a spine and put a stop to Trump’s crypto corruption,”
she wrote.
When the Trump family unveiled World Liberty Financial in September 2024, Donald Trump Jr. said the venture was intended to expand financial access for people unable to secure loans from traditional banks—a claim now under renewed scrutiny amid questions over foreign influence and presidential ethics.
