UAE Investment Fuels Crypto Startup with Trump Ties
In a move that’s sent ripples through both the cryptocurrency and political landscapes, a UAE-backed investment vehicle has acquired a substantial stake in World Liberty Financial (WLF), a crypto startup with ties to former President Donald Trump. The deal, reported by The Wall Street Journal, involved Aryam Investment 1, an Abu Dhabi entity, purchasing a 49% stake in WLF for a staggering $500 million.
The Deal’s Details and Timing
The agreement, finalized in January 2025, just before Trump‘s return to the White House, saw Aryam Investment 1 paying a significant upfront sum. A substantial portion, $187 million, reportedly flowed to entities controlled by the Trump family. Additional funds went to entities associated with WLF co-founders, including relatives of US Middle East envoy Steve Witkoff. The deal was reportedly signed by Eric Trump.
This transaction raises several questions, particularly given the timing and the involvement of individuals with close connections to both the Trump administration and the UAE government. The deal’s lack of immediate public disclosure has added to the intrigue, especially as WLF later revealed a sharp decline in the Trump family’s stake. Furthermore, executives from G42, a firm involved in the UAE‘s AI ambitions, reportedly managed Aryam Investment 1 and secured board seats at World Liberty as part of the deal, becoming the startup’s largest outside shareholder.
Geopolitical and Financial Implications
This investment arrives amidst a broader context of growing UAE influence in the tech and financial sectors. Sheikh Tahnoon bin Zayed Al Nahyan, the brother of the UAE president and a key figure in Abu Dhabi’s national security apparatus, has been driving the country’s push to become a global leader in artificial intelligence. Previously, under the Biden administration, efforts to secure advanced US-made AI chips faced restrictions. However, with Trump‘s election, these efforts gained momentum.
Adding to the complexity, another Tahnoon-led firm used WLF’s stablecoin to complete a $2 billion investment into Binance just weeks before the US-UAE chip framework was announced. This underscores the intricate web of financial and political relationships at play.
Potential Concerns and Regulatory Scrutiny
WLF’s operations have already attracted scrutiny. Last year, Democratic senators called for investigations into alleged links between WLF’s token sales and sanctioned foreign actors. Senators Elizabeth Warren and Jack Reed cited claims that WLFI governance tokens were purchased by blockchain addresses tied to North Korea’s Lazarus Group and entities with Russian and Iranian connections.
“The deal sparks immediate concerns over potential conflicts of interest,” commented a crypto market analyst. “Given the ownership structure and the Trump family’s control over token revenue, this situation warrants careful examination.”
The situation highlights the evolving intersection of crypto, geopolitics, and political influence. It is a story that demands close observation as investigations and debates are likely to continue.
