Two Democratic senators need federal investigators to look into potential ethics violations by prime Trump administration officers. The probe facilities on a $2 billion cryptocurrency take care of the United Arab Emirates that occurred simply weeks earlier than the U.S. authorized main know-how exports to that nation.
Senators Elizabeth Warren and Elissa Slotkin despatched a letter on September 23, 2025, asking three federal oversight businesses to research potential conflicts of curiosity. The letter targets David Sacks, who serves because the White Home AI and Crypto Czar, and Steve Witkoff, the U.S. Particular Envoy to the Center East.
Two Related Offers Elevate Crimson Flags
The investigation focuses on two main offers that occurred shut collectively in Might 2025. First, a UAE government-backed firm known as MGX invested $2 billion in World Liberty Financial, a cryptocurrency startup based by the Trump household and the Witkoff household.
Two weeks later, the Trump administration authorized the sale of a whole bunch of 1000’s of superior synthetic intelligence pc chips to the UAE. These chips are essential for AI growth and are thought of delicate nationwide safety know-how.
Sheikh Tahnoon bin Zayed Al Nahyan, who serves because the UAE’s Nationwide Safety Advisor, controls the funding agency that put cash into the Trump crypto firm. The identical particular person additionally controls firms that acquired entry to the AI chips by way of the federal government approval.
The senators wrote that this timing creates critical issues about whether or not authorities officers used their positions to learn financially whereas probably compromising U.S. nationwide safety.
Officers Had Monetary Stakes within the Offers
Each Sacks and Witkoff had private monetary pursuits that might profit from these authorities choices, in response to the senators’ letter. Witkoff co-founded World Liberty Monetary with the Trump household and maintains possession within the firm. His son, Zach Witkoff, serves as the corporate’s CEO and helped prepare the $2 billion UAE funding.
Supply: banking.senate.gov
In the meantime, Sacks continues to handle a enterprise capital fund known as Craft Ventures that receives cash from UAE sources, together with the Abu Dhabi Funding Authority. This fund additionally invests in firms that help the USD1 stablecoin issued by World Liberty Monetary.
The senators argue that each officers ought to have eliminated themselves from authorities choices that might profit their private funds. As an alternative, they actively advocated for insurance policies that helped their enterprise pursuits.
“The sample of those transactions is deeply troubling,” Warren and Slotkin wrote of their letter to federal agencies. They known as the state of affairs one of the crucial vital conflicts of curiosity in U.S. overseas coverage historical past.
Nationwide Safety Considerations Mount
The investigation additionally highlights nationwide safety worries concerning the AI chip exports to the UAE. Intelligence officers have raised issues concerning the UAE’s shut ties to China and whether or not superior U.S. know-how may find yourself serving to China’s army capabilities.
The authorized chip gross sales will enhance from about 100,000 per 12 months to 500,000 chips yearly. One-fifth of those chips will go on to G42, an organization managed by Sheikh Tahnoon. This raises questions on whether or not private enterprise relationships influenced nationwide safety choices.
A number of nationwide safety officers reportedly objected to the chip exports, warning that the UAE may assist China achieve entry to superior AI know-how that may be used to develop weapons in opposition to American forces.
Trump Crypto Enterprise Generates Huge Earnings
World Liberty Monetary has turn out to be a serious monetary success for the Trump household. The corporate’s WLFI token launched in September 2025 with a market worth exceeding $7 billion, making it one of many prime 25 cryptocurrencies.
The Trump household controls 75% of the corporate’s income from token gross sales and 60% of future enterprise operations. Donald Trump serves as “Chief Crypto Advocate,” whereas his sons Eric, Donald Jr., and Barron Trump maintain numerous management roles.
The corporate additionally issued a stablecoin known as USD1, which MGX used for its $2 billion funding within the cryptocurrency alternate Binance. This association successfully offered World Liberty Monetary with $2 billion in financial institution deposits.
In accordance with evaluation, the Trump household has earned $57 million in income from the enterprise, even after decreasing their stake by 20%.
White Home Denies Wrongdoing
The White Home has rejected claims of improper conduct. A spokesperson stated each Sacks and Witkoff adopted correct ethics procedures, together with acquiring essential waivers and eradicating themselves from conflicting monetary pursuits.
The White Home said that Sacks acquired an ethics waiver and has no monetary stake within the AI chip deal. Officers additionally stated Witkoff is working to promote his pursuits in World Liberty Monetary.
Nevertheless, the senators argue that these officers continued to take part in authorities choices that might profit their private funds, even whereas claiming to observe ethics guidelines.
The Highway Forward
The senators despatched their investigation request to a few businesses: the Commerce Division’s Inspector Basic, the State Division’s Inspector Basic, and the Workplace of Authorities Ethics. These businesses now should resolve whether or not to launch formal investigations.
The probe comes as Congress works on new cryptocurrency rules. Warren and Slotkin argue that lawmakers can not contemplate new crypto guidelines till they perceive how present rules might have been violated.
The investigation additionally displays broader issues about mixing authorities service with private enterprise pursuits, particularly involving overseas governments and delicate nationwide safety know-how.
When Politics Meets Revenue
This investigation reveals how cryptocurrency investments and authorities coverage can create sophisticated moral issues. As digital property turn out to be extra vital in international finance, making certain that authorities officers can not revenue from their coverage choices turns into essential for sustaining public belief and nationwide safety.
The end result of this probe may set vital precedents for a way authorities officers deal with cryptocurrency investments and overseas enterprise relationships sooner or later.
Sven Luiv Sven Luiv Read More
