The Trump family’s deep involvement in the crypto world is again under scrutiny after a major $2 billion investment was announced involving their stablecoin.
At a recent crypto conference in the UAE, Eric Trump and Zach Witkoff revealed that World Liberty Financial’s USD1 coin will be used by MGX, a UAE government-backed firm, to invest $2 billion in Binance, one of the world’s biggest cryptocurrency exchanges.
This announcement raises serious questions. It comes just weeks after Binance’s founder, Changpeng Zhao, said he hadn’t had any conversations with anyone about a Binance US deal.
It also follows a long list of controversies surrounding Binance, which admitted to multiple financial crimes last year, including money laundering and violating US sanctions. The platform is now under heavy restrictions in the United States.
The bigger concern is the link between this foreign-backed investment and Donald Trump’s family. World Liberty Financial, the company behind the stablecoin being used for the transaction, is not just any company.
It’s led by Trump’s family members and those close to him, including Steve Witkoff, a known ally and former envoy to the Middle East. Though Trump himself does not officially hold a position in the company, his influence is hard to miss.
The Trump family’s actions follow a pattern seen before, where foreign money flows into ventures connected to Trump while he either holds or is close to holding power.
During his presidency, similar concerns were raised when foreign officials stayed at his hotels, possibly to curry favor. Now, the same kind of influence seems to be operating through crypto.
Even before this deal, Trump had made waves in the crypto space. Just before taking office, he launched a meme coin called $TRUMP. It made him a fortune overnight, but he quickly lost value.
Still, it showed how serious Trump is about making money from the crypto market. More recently, he invited top $TRUMP investors to an exclusive dinner at his Mar-a-Lago club.
This move triggered a sharp 30% jump in the coin’s value, with one investor reportedly putting in $24 million. Analysts believe many of these buyers may have been hoping for direct access to Trump in return.
Now, Trump’s crypto empire is expanding beyond individual investors. Entire countries and foreign-backed firms are getting involved.
According to a report from The New York Times, World Liberty Financial has earned more than $550 million by selling its stablecoin and another token called WLFI. In private meetings with investors, the firm has reportedly emphasized its close ties to Trump to build credibility.
Some investors have spoken out. One CEO, Mike Silagadze from Ether.Fi said the pitch from World Liberty Financial kept focusing on how close they are to Trump. Another investor from Germany called the entire approach dishonest.
But not everyone walked away. Companies in Hong Kong, Israel, and the UAE have partnered with World Liberty Financial, believing the Trump name will boost profits.
Many in the crypto world are disturbed by this. Andre Cronje, founder of SonicLabs, said the offer from Trump’s crypto firm was “a black spot on our industry.” He rejected the deal but acknowledged that others may not.
Back in the US, lawmakers are raising alarms. Trump is reportedly pushing to reduce crypto regulations at a time when his family stands to gain the most. The timing has made it hard to believe that decisions around crypto policy are being made fairly or in the public interest.
Senator Elizabeth Warren didn’t hold back. She called the $2 billion deal “shady” and said it was backed by a foreign fund using Trump’s stablecoins. She warned that upcoming legislation around stablecoins could make it even easier for Trump’s family to profit, and urged her fellow senators not to support it.
Senator Chris Murphy went even further. He described Trump’s involvement in crypto as “the biggest corruption scandal in the history of the American presidency.”
He told MSNBC that these crypto deals could be a form of bribery in plain sight. Foreign billionaires or CEOs could simply buy Trump’s coin and expect favors in return.
Murphy warned that a president running what he called a “back-door bribery scheme” through crypto should not be allowed. He said Congress needs to take urgent steps to stop any president from profiting off the White House by launching and promoting crypto coins to the public and foreign influencers.
The situation is rapidly evolving, and many Americans are watching closely. With Trump continuing to play a leading role in politics, the intersection of his financial ventures and government policy is raising serious ethical, legal, and national security concerns.
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