TLDR
- Senators Warren and Slotkin are pressing for a probe into Trump’s crypto ventures with UAE.
- The probe is centered around potential ethics violations tied to AI chip and crypto deals.
- The Trump administration is under scrutiny for deals that may involve national security concerns.
- Warren and Slotkin question the involvement of Trump associates in sensitive tech and crypto deals.
Senators Elizabeth Warren and Elissa Slotkin have called for an investigation into potential ethics violations related to a series of high-profile deals involving former President Donald Trump’s family. The inquiry targets Trump’s crypto company, World Liberty Financial (WLF), and its links to the United Arab Emirates (UAE), including the approval of U.S. artificial intelligence (AI) chip exports.
The request for the investigation comes after an exposé by The New York Times that examined the Trump administration’s role in two significant transactions involving WLF and UAE entities. These deals, according to Warren and Slotkin, may have raised national security issues and potential conflicts of interest, especially as the administration was involved in granting the UAE access to sensitive AI chips.
Potential Ethics Violations and National Security Concerns
In a letter sent to inspectors general at the U.S. Departments of Commerce and State, as well as the Office of Government Ethics, Warren and Slotkin expressed concerns over the involvement of two senior officials. The letter specifically names David Sacks, the White House AI and Crypto Czar, and Steve Witkoff, U.S. Special Envoy to the Middle East, both of whom are linked to WLF.
The New York Times report suggests that the deals were closely timed: One involved the approval of U.S.-made AI chips being sent to the UAE, while the other saw the UAE investing $2 billion in the crypto exchange Binance through WLF’s newly launched USD1 stablecoin. This series of events has raised questions about whether these government officials used their positions to personally benefit from the transactions, which may have further complicated U.S. foreign policy and national security priorities.
Despite no clear evidence of explicit wrongdoing, the sequence of events led to accusations that these transactions could have been influenced by personal financial interests.
White House Response and Defending the Deals
White House representatives have denied any direct connection between the two deals. A spokesperson asserted that Witkoff and Sacks followed ethics protocols, including obtaining necessary waivers and divesting from personal financial interests. Specifically, they noted that Sacks had no financial stake in the AI chip deal, and Witkoff was taking steps to divest from WLF.
Witkoff’s involvement has raised concerns, as he continued to hold financial interests in WLF during his time as a government official.
According to reports, Witkoff and his family own a significant portion of WLF’s tokens, which could be worth hundreds of millions. Ethics rules prohibit government officials from participating in matters that could financially benefit them or their family members, yet Witkoff’s ongoing financial stake in WLF may have created a conflict of interest.
Crypto Bill and Ongoing Legislation
This investigation into Trump’s crypto ventures occurs amid broader efforts in Congress to regulate the crypto industry. Senators are working on a crypto market structure bill, which is expected to address a range of issues concerning cryptocurrency exchanges and digital assets.
As lawmakers examine these matters, Trump’s involvement in the crypto and AI sectors continues to be a point of contention. Some lawmakers argue that his business interests may influence policymaking and national security, particularly as the U.S. government attempts to protect sensitive technologies from foreign powers.
