Democrats Are Demanding Answers on Trump’s Half-Billion Dollar Crypto Deal With Abu Dhabi Royalty

TLDR

• Senate Democrats sent a letter urging Republicans to hold hearings on a reported $500M deal between Trump’s crypto firm and Abu Dhabi royalty
• An Abu Dhabi investment vehicle backed by Sheikh Tahnoon bin Zayed Al Nahyan acquired a 49% stake in World Liberty Financial before Trump’s inauguration
• Months later, the Trump administration gave the UAE access to thousands of AI chips despite national security concerns
• Trump says he was unaware of the investment and is not involved in World Liberty’s daily operations
• The controversy is now threatening to derail a major US crypto regulation bill in Congress

The controversy centers on World Liberty Financial, a DeFi and stablecoin platform that lists President Trump and his three sons as advisors.

The Wall Street Journal reported that an Abu Dhabi investment vehicle, backed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser, quietly acquired a 49% stake in the company. The deal was signed by Eric Trump just four days before his father’s January 2025 inauguration.

The total investment was reported at $500 million. Half was paid upfront, with $187 million going to Trump family-controlled entities and at least $31 million to entities linked to Steve Witkoff’s family. Witkoff co-founded World Liberty and was later named US Special Envoy to the Middle East.

Democrats Call for Answers

On Tuesday, a group of Democratic senators sent a formal letter to Republican Senate leadership demanding “immediate hearings” on the matter. The letter was signed by Senators Elizabeth Warren, Gary Peters, Ron Wyden, Richard Durbin, and Richard Blumenthal.

The senators said Congress has a responsibility to investigate whether the UAE investment influenced decisions made by the Trump administration. Republicans control the Senate and its committees, meaning they alone decide whether hearings happen.

National Security Concerns

The Democrats raised concerns about a deal made months after the Sheikh’s investment. The Trump administration released a framework giving the UAE access to thousands of AI chips, despite warnings from US national security officials that China could potentially access them.

Trump has said he was not aware of the $500 million deal and plays no role in World Liberty’s day-to-day operations.

The senators also flagged steps taken by the administration to ease rules for crypto firms, including exempting crypto service providers from certain financial regulations and disbanding the Justice Department’s crypto enforcement unit.

Earlier this year, Senator Warren urged Treasury Secretary Scott Bessent to assess whether the Abu Dhabi investment required a national security review. Democratic Representative Ro Khanna launched a separate House investigation into the deal.

Democrats also previously questioned the SEC’s decision to drop a fraud case against Justin Sun, a major World Liberty Financial backer.

In May, Senator Peter Welch and Representative Dave Min launched a probe into presidential pardons, including one granted to Binance co-founder Changpeng Zhao. That pardon came after Binance accepted a $2 billion investment from an Abu Dhabi fund, with payments agreed to be made in World Liberty Financial’s stablecoin, USD1.

The Trump family has reportedly earned more than $1 billion from crypto ventures. World Liberty Financial is also seeking a federal banking charter.

The controversy is now casting a shadow over the Clarity Act, a proposed federal crypto regulation bill. Several Democratic lawmakers have said they will not support it unless ethics provisions are added to address conflicts of interest tied to Trump’s crypto holdings.

The post Democrats Are Demanding Answers on Trump’s Half-Billion Dollar Crypto Deal With Abu Dhabi Royalty appeared first on CoinCentral.