On September 25, 2025, a political storm erupted in Washington as Senators Elizabeth Warren of Massachusetts and Elissa Slotkin of Michigan formally demanded a sweeping investigation into the Trump administration’s cryptocurrency and artificial intelligence (AI) dealings with the United Arab Emirates (UAE). Their call for scrutiny centers on World Liberty Financial (WLF)—a crypto company co-founded by former President Donald Trump and his three sons—and a series of high-profile transactions that have raised eyebrows across Capitol Hill and beyond.
The senators’ concerns, outlined in a letter sent to the inspectors general at the Commerce and State Departments as well as the Office of Government Ethics, focus on two interconnected deals announced in May 2025. In one, the Trump administration approved the export of advanced, American-designed AI chips to the UAE. In the other, a UAE government-backed firm invested a staggering $2 billion into WLF’s new USD1 stablecoin, a digital asset pegged to the U.S. dollar and designed to facilitate global crypto transactions. As reported by The New York Times and confirmed by several outlets, the timing and scale of these deals have led to allegations of potential conflicts of interest and national security risks.
At the heart of the controversy are two senior Trump administration officials: David Sacks, known as the White House’s AI and Crypto Czar, and Steve Witkoff, U.S. Special Envoy to the Middle East. Both men are closely linked to WLF and, according to the senators and multiple news reports, played key roles in shaping the government’s approach to both the AI chip export decision and the crypto investment from the UAE. Witkoff, who transitioned from the State Department to a White House post earlier this year, has been singled out for advocating the chip exports while his family’s firm simultaneously secured the lucrative crypto deal.
Witkoff’s connections run deep. His son, Zach Witkoff, serves as CEO of World Liberty Financial and was instrumental in brokering the $2 billion UAE-backed stablecoin deal. Meanwhile, Witkoff himself reportedly retained a substantial financial interest in WLF throughout this period, even as he held a powerful government position. According to WLFI News, the Trump family controls 75% of WLF’s net token sale revenues and 60% of its future business operations—a stake that could generate $400 million in fees. The senators argue that such overlapping personal and official interests create a textbook conflict of interest. "In the history of our country's foreign policy, one is hard-pressed to find two senior officials with such significant conflicts of interest," Warren and Slotkin wrote in their letter.
The senators’ letter also pointed to David Sacks’s ongoing management of a venture fund that is backed by Emirati capital and invests in USD1 infrastructure. Sacks, who was directly involved in White House discussions about the AI chip exports, has been accused of participating in government decisions that could benefit his own financial interests. The senators highlighted that both Sacks and Witkoff “stood to profit from government decisions they helped shape,” a pattern they described as “deeply troubling.”
For its part, the White House has pushed back against the allegations. According to spokespersons cited by The New York Times and Benzinga, both Sacks and Witkoff followed established ethics protocols. Sacks reportedly received an ethics waiver and, officials say, had no financial stake in the AI chip deal. Witkoff, meanwhile, is said to be in the process of divesting his holdings in WLF, though critics argue this move came too late. The administration maintains there is no direct connection between the two controversial deals, but the perception of impropriety has proven difficult to shake.
Adding to the scrutiny, Senator Warren has previously described the Trump-backed USD1 stablecoin as "shady and a national security risk," warning that it could serve as a conduit for corruption and foreign influence. "He’s cashing in on foreign crypto deals—and weakening guardrails that protect our advanced technology," Warren said, echoing concerns that the intersection of crypto, AI, and foreign capital presents new challenges for U.S. security and policy.
The controversy comes at a pivotal moment for the cryptocurrency industry in the United States. Congress is currently debating a high-stakes crypto market structure bill, which seeks to establish clearer rules for digital asset exchanges and related technologies. Warren and Slotkin have warned that they will oppose any digital asset market legislation until the public receives answers about whether “politically connected crypto interests are undermining our national security.” Their resistance underscores the broader debate in Washington over how to balance innovation with oversight in the rapidly evolving crypto and AI sectors.
Meanwhile, the Trump family has vigorously defended its business activities. Eric Trump, one of the company’s co-founders, told WLFI News that the family has always been “serial capitalists” and turned to crypto after being “debanked by everybody.” The Trumps’ deep involvement in WLF, combined with the company’s outsize role in the UAE deals, has only intensified the spotlight on the former president’s post-White House ventures.
Senator Warren’s push for an investigation is not her first foray into crypto oversight. She has previously questioned whether Sacks overstayed his term limit as a special government employee to continue influencing digital asset policy. Her persistent focus on the intersection of government service and private financial gain has made her a leading voice in the ongoing debate over ethics in public office.
On the legislative front, the investigation into WLF and the Trump administration’s crypto dealings is expected to shape the conversation around the pending crypto market structure bill. Lawmakers from both parties have expressed concerns about the potential for digital assets to be used for money laundering, sanctions evasion, or the circumvention of national security controls. The UAE’s willingness to invest billions in a Trump-affiliated crypto venture, while simultaneously benefiting from relaxed U.S. export restrictions on cutting-edge AI technology, has only deepened those anxieties.
As the probes get underway, the inspectors general of the Commerce and State Departments, along with the Office of Government Ethics, face mounting pressure to deliver clear answers. The stakes are high: the outcome could influence not just the fate of WLF and the Trump family’s business interests, but also the broader framework for how America manages the intersection of technology, finance, and foreign policy.
The coming months are likely to see continued political wrangling, intense media scrutiny, and perhaps even new revelations as investigators dig deeper into the web of relationships connecting the Trump administration, World Liberty Financial, and the UAE. For now, the story remains a vivid reminder of the challenges posed when private ambition and public service collide in the high-stakes world of global finance and technology.
