White House Faces Scrutiny Over Emirati Royal’s $500 Million Investment in Trump Family Crypto Firm
February 2, 2026 — By Lucien Bruggeman and David Brennan, ABC News
The White House is confronting fresh questions after revelations that a member of the United Arab Emirates (UAE) royal family invested $500 million in a cryptocurrency firm affiliated with former President Donald Trump and his family just days before he took office in January 2025. The controversial deal, first reported by The Wall Street Journal on Saturday, highlights potential conflicts of interest and ethical concerns surrounding U.S. foreign policy decisions that followed.
The Deal and Its Timing
According to The Wall Street Journal, which reviewed previously undisclosed corporate documents, Sheikh Tahnoon bin Zayed Al Nahyan, a prominent Abu Dhabi royal and operator of a vast state investment fund, acquired a 49% stake in World Liberty Financial. This cryptocurrency company is co-owned by Middle East envoy Steve Witkoff and his family. The purchase was finalized a mere four days before former President Trump’s inauguration on January 20, 2025. Sheikh Tahnoon, who also chairs MGX, a UAE-backed investment firm, reportedly paid about half of his investment upfront—an amount estimated around $187 million based on the company’s ownership structure at that time. This significant cash infusion into the Trump family’s business holdings immediately before Trump assumed the presidency has triggered a wave of ethical and national security concerns.
Links to U.S. National Security and AI Chip Sales
Months after the investment, the Trump administration approved the sale of advanced American-made artificial intelligence (AI) chips to the UAE, a decision that reversed the Biden administration’s prior refusal. The previous administration had withheld these highly sensitive chips over fears they could be diverted to China, potentially compromising U.S. national security.
Experts warn that if China gains access to these AI chips, it could accelerate its military and cyber capabilities, including cyberattacks and the development of autonomous weapons capable of threatening U.S. naval forces.
David Wachsman, a spokesperson for World Liberty Financial, acknowledged the existence of the sale but insisted to ABC News that "neither President Trump nor Steve Witkoff had any involvement whatsoever in this transaction." Wachsman further rejected any link between the investment and the chip sale, stating, "any claim that this deal had anything to do with the Administration’s actions on chips is 100% false."
White House Response
White House counsel David Warrington echoed these denials, assuring ABC News that the president remains uninvolved in business dealings that intersect with his constitutional duties. "President Trump performs his constitutional duties in an ethically sound manner," Warrington stated, dismissing suggestions of conflict as either "ill-informed or malicious."
White House spokeswoman Anna Kelly emphasized that President Trump’s assets are managed in a trust run by his children and insisted there is no conflict of interest. However, ethics experts point out that a trust managed by family members might not meet the independence typically associated with a blind trust, intensifying concerns over transparency and ethical propriety.
Broader Connections: UAE-Backed MGX and Binance Investment
The revelations have deeper implications given Sheikh Tahnoon’s role as chairman of MGX, the UAE-backed investment firm which, in May 2025, announced plans to channel financing into a $2 billion investment in Binance, one of the world’s largest cryptocurrency exchanges. The deal involves the use of a digital token issued by World Liberty Financial, linking the Trump family’s crypto venture to a major Emirati-controlled investment in a global crypto giant.
MGX is also notable for holding a 15% stake in a recently formed U.S. TikTok joint venture, further entangling it in significant areas of U.S. tech and national security interests.
Political Reaction and Ethical Concerns
Congressional Democrats swiftly condemned the deal:
- Senator Chris Murphy (D-Conn.) called the situation "mind blowing corruption."
- Senator Elizabeth Warren (D-Mass.) described the transaction as "corruption, plain and simple."
- Senator Chris Van Hollen (D-Md.) accused foreign countries of bribing the president to "sell out the American people."
Robert Weissman, co-president of Public Citizen, a consumer advocacy group, summed up the dilemma: “Maybe the President would have reached the same decision over the transfer of high-tech chips to UAE if he wasn’t also getting money from them. But we have no way to know that, and we do know there was a lot of opposition inside the government to do exactly what he has OK’d.”
Trump Family’s Crypto Ventures Flourish
World Liberty Financial, which has become one of the Trump family’s most lucrative ventures, reportedly facilitated a roughly $5 billion windfall in digital token trading as of last year. The timing and scale of the Emirati investment inject new scrutiny into the Trump family’s business dealings intersecting with foreign policy, particularly involving sensitive technological exports.
Ongoing Coverage
This developing story raises complex questions about the intersections of private business interests, foreign investments, and national security. ABC News will continue monitoring these issues and provide updates as more information becomes available.
ABC News’ Selina Wang contributed to this report.