Written by: Sam Kessler, Rebecca Ballhaus, Eliot Brown, Angus Berwick, The Wall Street Journal

Compiled by: Luffy, Foresight News

According to company documents and sources familiar with the matter, four days before Donald Trump's inauguration as president last year, an aide to a member of the Abu Dhabi royal family secretly signed an agreement with the Trump family to acquire a 49% stake in their cryptocurrency startup for $500 million. The buyer paid half the amount upfront, with $187 million transferred directly to a Trump family entity.

This previously unreported deal with World Liberty Financial was signed by Eric Trump, the president's son. Documents show that at least another $31 million will go to a family-affiliated entity of the company's co-founder, Steve Witkoff, just weeks after Witkoff was appointed U.S. envoy to the Middle East.

Sources familiar with the matter say the investment is backed by Sheikh Tahnoon bin Zayed Al Nahyan, an Abu Dhabi royal who has been lobbying the United States for access to tightly controlled artificial intelligence chips. Tahnoon, sometimes referred to as the "spy sheikh," is the brother of the UAE president, the country's national security advisor, and the head of the oil-rich nation's largest sovereign wealth fund. He controls a business empire exceeding $1.3 trillion, backed by personal wealth and state funds, spanning sectors from fish farms and artificial intelligence to surveillance technology, making him one of the world's most powerful single investors.

This deal is unprecedented in American political history: a foreign government official has acquired a large stake in the company of the incoming US president.

During the Biden administration, Tahnoon's efforts to acquire AI hardware were largely hampered by concerns that sensitive technologies might flow to China. Particularly alarming to US intelligence officials and lawmakers was Tahnoon's AI subsidiary, G42, which has close ties to sanctioned tech giant Huawei and other Chinese companies, raising concerns from various quarters. Although G42 claims to have severed ties with China by the end of 2023, US concerns remain.

Trump's victory reopened doors for Tahnoon. Sources indicate that in the months that followed, Tahnoon met multiple times with Trump, Witkoff, and other U.S. officials, including during a visit to the White House in March, where the chief expressed his strong desire to cooperate with the U.S. in areas such as AI.

Two months after their March meeting, the Trump administration pledged to provide the Gulf nation with approximately 500,000 state-of-the-art AI chips annually—enough to build one of the world's largest AI data center clusters. The Wall Street Journal previously reported that the framework agreement stipulated that about one-fifth of these chips would go to G42.

This agreement is widely seen as a major victory for the UAE's ruling family, overcoming long-standing US national security concerns and allowing the country to compete with the world's strongest economies in cutting-edge AI fields. Supporters praise it for attracting massive investment to the US and helping American technology establish global standards.

What was previously unknown to the outside world was that Tahnoon's special envoy had signed an agreement in January of that year to acquire 49% of the shares of World Liberty Financial.

Last March, Tahnoon met with Trump and other U.S. officials at the White House.

Details of the $500 million deal

Documents show that of the initial $250 million payment from Aryam Investment 1, a company backed by Tahnoon, $187 million was directly transferred to DT Marks DEFI LLC and DT Marks SC LLC, entities owned by the Trump family. In addition to the funds flowing to Witkoff family entities, another $31 million was transferred to entities associated with co-founders Zak Folkman and Chase Herro. The Wall Street Journal has not yet determined the specific allocation of the remaining $250 million investment that Aryam is due to pay by July 15, 2025.

The agreement makes Aryam the largest shareholder of World Liberty Financial and the only known outside investor besides the company's founders. Documents show the deal secured two seats on World Liberty Financial's five-member board of directors. The two Aryam executives appointed to the board also hold executive positions at Tahnoon's G42; the board at the time included Eric Trump and Zach Witkoff (Steve Witkoff's son).

Since Trump's election victory, his real estate company has sought partnerships with foreign businesses, and the president himself has received gifts from foreign governments, including a $400 million luxury jet from Qatar. However, the World Liberty Financial deal is the only known instance of a foreign government official purchasing a significant stake in one of Trump's companies after his election victory.

Information disclosed on World Liberty Financial's official website shows that the Trump family's stake has decreased from 75% last year to 38%, indicating that an external party has purchased shares, but the company has never disclosed the identity of the buyer.

Weeks before the US-Argentina chip deal was announced last May, World Liberty Financial CEO Zach Witkoff announced that MGX, an investment firm led by Tahnoon, would use stablecoins issued by World Liberty Financial to complete a $2 billion investment in cryptocurrency exchange Binance. Executives from G42 who joined the board of directors of World Liberty Financial also serve on the board of directors of MGX, a joint venture with G42.

Zach Witkoff touted MGX's stablecoin partnership as an endorsement of World Liberty Financial's technology, but failed to disclose that MGX and World Liberty Financial were led by the same group of people.

David Wachsman, a spokesperson for World Liberty Financial, stated regarding Aryam's investment: "We entered into this deal because we firmly believe it is in the best interests of the company's continued growth. The idea that a privately held American company should be subject to special standards that other similar companies are not required to meet when raising funds is both absurd and contrary to the American spirit."

He stated that neither President Trump nor Steve Witkoff were involved in the transaction, and that neither had been involved in World Liberty Financial's affairs since taking office. Witkoff had never held an operational position at the company. He added that the transaction did not grant any party access to government decision-making or influence policy, stating, "We adhere to the exact same rules and regulations as other companies in the industry."

A person familiar with Tahnoon's investment stated that Tahnoon and his team conducted "months of evaluation" of World Liberty Financial's plans before making the investment, which he completed with "several co-investors." The person added that the investment did not utilize G42 funds. "This investment was not discussed with President Trump at any stage of due diligence or at any subsequent stage," the person said, adding that Tahnoon is a "significant investor" in the cryptocurrency business.

White House spokeswoman Anna Kelly said, "President Trump acts solely in the best interests of the American public." She stated that the president's assets are held in a trust managed by his children, "there is no conflict of interest," and that Witkoff is committed to "advancing President Trump's global peace goals."

White House Counsel David Warrington stated, "The president has not been involved in any commercial transactions that could affect his constitutional duties."

He stated that Witkoff strictly adheres to government ethics guidelines, "he has never and will never participate in any official affairs that could affect his economic interests," and added that Witkoff has "stripped of his stake in World Liberty Financial."

A source close to Witkoff said the envoy was not involved in the AI chip negotiations related to the G42, but was briefed on the relevant discussions.

A spokesperson for the Trump Organization stated that the company "takes ethical obligations very seriously, is committed to preventing conflicts of interest," and complies with all applicable laws.

The Chief's AI Chip Offensive

Trump poses for a photo with UAE President Mohammed during his visit to the UAE last May.

Following Trump's election victory, the UAE hopes that the United States will find more cooperative partners.

For Tahnoon, securing American chips is a top priority. Entrusted by his brother, he spearheaded efforts to make the UAE a global leader in AI. During the Biden administration, due to concerns that chips might flow to China, the US only allowed the UAE a limited number of chips. Although G42 claims to have severed ties with China by the end of 2023, UAE entities, including other companies within Tahnoon's business empire, maintain close ties with China.

Tahnoon hopes to secure approval for a large number of additional chips to build one of the world's largest AI data center clusters, requiring the equivalent of the power generated by two Hoover Dams. Tahnoon and his deputy plan to lobby extensively for the support of the new Trump administration.

Tahnoon has long had business dealings with the Trump family through Trump's son-in-law, Jared Kushner. In 2024, Kushner's investment firm raised $1.5 billion from a Tahnoon-backed company in Qatar.

Shortly after his victory, Trump appointed his longtime friend and golf buddy Steve Witkoff as his Middle East envoy. Witkoff acted swiftly, informing Biden administration officials of his plans to reach out to people in the Middle East and his upcoming trips to the UAE, Qatar, Saudi Arabia, and Israel before taking office.

Witkoff's trip to the UAE in early December 2024 served a dual purpose: diplomacy and cryptocurrency. Having helped found World Liberty Financial in September, Witkoff attended a cryptocurrency conference in Abu Dhabi, where he met with crypto giants and Eric Trump in a VIP room. In his keynote address, Eric Trump declared to the UAE people, "Our family loves you."

The Wall Street Journal previously reported that Witkoff also met with Tahnoon as part of a series of talks in the region, covering issues including a ceasefire in Gaza.

About a week after Witkoff's trip, two entities were registered in Delaware and Abu Dhabi within two days of each other. No ownership information was disclosed, and the two companies shared the same name: Aryam Investment 1.

According to company records reviewed by The Wall Street Journal, the Delaware-based Aryam is managed by executives from Tahnoon’s G42; the Abu Dhabi entity shares an office address in the UAE with several other companies within the Emirates’ business empire.

Weeks later, on January 16, 2025, Aryam's representatives signed the $500 million deal with Trump and Witkoff's World Liberty Financial.

The network of interests behind the transaction

At the time the investment was finalized, World Liberty Financial had no products and had only raised $82 million by issuing a token called WLFI. Documents show that Aryam's investment did not grant it the right to sell WLFI tokens in the future, meaning that the Tahnoon-backed entity was excluded from the company's sole source of revenue at the time.

The agreement for Aryam to acquire a stake in World Liberty Financial was signed by Martin Edelman, General Counsel of G42 and a key advisor to Tahnoon, and Peng Xiao, CEO of G42. The transaction also involves Tahnoon's personal investment firm, Royal Group, for which Edelman also serves as an advisor.

Edelman and Xiao joined the board of directors of World Liberty Financial, but the company's website does not list them as team members.

The two men played a key role in lobbying the Trump administration in the UAE to acquire chips.

Fiacc Larkin, Head of Crypto & Blockchain at G42, joined World Liberty Financial in January 2025 as Chief Strategy Advisor. His LinkedIn profile indicates he also advises the Abu Dhabi Department of Economic Development, a government agency.

For years, G42 has been under close scrutiny by Biden administration officials and Republican lawmakers. In 2024, Republican lawmakers called for an investigation into the risk that China would acquire sensitive U.S. technology through the company.

Peng Xiao, born in China, attended university in Washington, D.C., and obtained U.S. citizenship before renouncing it and instead becoming a citizen of the United Arab Emirates. During the Biden administration, Peng Xiao herself was also subject to scrutiny.

In 2024, a Republican committee chairman wrote to the Commerce Department requesting an investigation, stating that documents showed a “vast network” behind Peng Xiao, comprised of companies from the UAE and China.

Trump met with Mohammed during his visit last May. Peng Xiao, CEO of G42, Tahnoon's AI company, was present (second from left).

In a statement at the time, G42 denied the allegations in the letter, stating that the company had ceased cooperation with Chinese companies.

Edelman is a prominent New York real estate lawyer who has cultivated extensive connections in the UAE for decades. He advises the UAE royal family and serves on the boards of several Tahnoon-owned companies, including G42 and MGX. He is also a longtime friend of Witkoff and publicly praised him after the election.

Company documents reviewed by The Wall Street Journal show that the share acquisition deal brought huge profits to the founders of World Liberty Financial, with the Trump family, the Witkoff family, and Folkman and Herro affiliates all quickly reaping financial returns. Trump's disclosures show that as of the end of 2024, he personally held 70% of DT Marks DEFI, with the remaining 30% held by other family members; he did not disclose the shareholding structure of DT Marks SC.

Ethical and legal controversies

Detailed analysis of this investment transaction

Trump has long been criticized for retaining control of his private business empire and profiting from overseas transactions during his presidency. During his first term, Democratic lawmakers sued Trump, accusing him of violating the Constitution's "payment clause" by profiting from foreign government patronage of his businesses. Trump called it political persecution, while the Justice Department argued that Trump's profit sharing did not constitute payment, and the Supreme Court ultimately declined to hear the case.

During his second term, Trump's real estate holding company, the Trump Organization, stated that it would not sign new contracts with foreign governments during the presidency, but did not restrict new collaborations with foreign private companies, a loosening compared to his first term. The company stated it would donate profits earned from identifiable foreign government officials in its hotels and other businesses to the U.S. Treasury. World Liberty Financial did not make such a commitment.

Legal experts say the deal with Aryam may violate remuneration terms, and the timing of the UAE chip deal closely coincides with the World Liberty Financial deal, constituting a significant conflict of interest.

Kathleen Clark, a law professor at the University of Washington and a former ethics lawyer for the Washington, D.C. government, stated that the clause is designed to prevent any government official from being "bought off by a foreign government." "This clearly violates the foreign compensation clause, and more importantly, it looks like bribery."

She stated that this deal "should be a level five alert for the sale of the federal government."

Ty Cobb, who served as a senior White House counsel during Trump's first term, said that Trump's conflicts of interest far exceeded those of his predecessors, "It's like a B-52 bomber flying overhead and you're complaining about a kayak." "As an ethics lawyer, my advice would be very clear: don't do business with the families of foreign leaders. It tarnishes American foreign policy."

A White House official stated that World Liberty Financial's operations are unrelated to Trump, therefore any allegations related to his compensation are "false and irrelevant." White House Counsel Warrington stated that Trump "fulfilled his constitutional duty in an ethical manner."

From chip trading to Binance amnesty

During their visit last May, Trump and Mohammed toured a model of an artificial intelligence data center project.

Following its investment in World Liberty Financial, Tahnoon's efforts to acquire AI chips have accelerated.

The sheikh hosted CEOs of top global technology and finance companies at his royal estate in Abu Dhabi and frequently posted photos of these meetings on Instagram, most of which took place on a set of white sofas. He is prepared to commit massive investments to the United States and emphasizes the UAE's existing ties with the US in the field of AI.

On his first day in office (five days after Aryam signed an agreement with World Liberty Financial), Trump announced at the White House that OpenAI and SoftBank planned a $500 billion AI data center project, with Tahnoon's MGX being one of the other two designated investors. The project has yet to progress.

Last spring, Trump administration officials began discussing a framework for a chip deal with the United Arab Emirates. Some officials did not see any national security risks, but others retained the concerns of the previous administration that the technology could ultimately flow to China. Sources familiar with the matter said they discussed options to limit control over the chips in the agreement, one of which was excluding UAE companies like G42 from direct access and requiring the technology to be held by US partners such as Microsoft and OpenAI.

In March, Tahnoon led a delegation to Washington, where, in addition to the chip agreement, he planned to push for faster government review of UAE investments in the US. He met with Trump in the Oval Office and pledged that the UAE would invest $1.4 trillion in the US over ten years. A source familiar with the matter said the president was very excited about this commitment, although government officials had difficulty understanding the specific details.

On March 18, Trump hosted a dinner at the White House for Tahnoon and his delegation, inviting the Vice President, Secretary of State, Secretary of Commerce, Secretary of the Treasury, and other cabinet members. Tahnoon sat next to Witkoff, while Edelman sat at the end of the table. Trump later posted photos on Truth Social, touting the "bond of friendship" between the two countries and stating that the two sides discussed strengthening cooperation in the economic and technological fields.

Former national security officials said they were shocked by the level of hospitality Tahnoon received. During the Biden administration, visiting foreign officials typically met only with their U.S. counterparts, not with the president and six cabinet members.

Meanwhile, Tahnoon's ties with World Liberty Financial have grown increasingly close. In May, Zach Witkoff announced at a cryptocurrency conference in Dubai that the Emir's investment firm, MGX, would complete a $2 billion investment in Binance using USD1, a stablecoin issued by World Liberty Financial—the largest single investment in cryptocurrency history. Zach Witkoff smiled and thanked MGX for "the trust they have in us."

This move propelled USD1 into the ranks of the world's largest stablecoins, enhancing its financial credibility and providing World Liberty Financial with $2 billion in cash reserves. The company will use these funds as reserves to maintain the stablecoin's 1:1 peg to the US dollar and invest the funds in US Treasury bonds to earn interest, which could generate approximately $80 million in returns if held for one year.

MGX told the Wall Street Journal last year that it evaluated stablecoins on multiple platforms and chose USD1 after considering factors such as "business suitability." A spokesperson for World Liberty Financial stated that USD1 is a "superior product."

Neither company has ever disclosed that MGX shares management with World Liberty Financial.

In fact, the Aryam deal laid the foundation for the launch of USD1. The investment was split into two newly formed World Liberty Financial entities, one responsible for operating the new stablecoin product and the other for managing the rest of the company's business.

Sources close to the company said that Larkin of G42 was in charge of the USD1 project at World Liberty Financial.

Tahnoon's $2 billion investment in Binance through MGX suggests he has a financial interest in pushing Binance founder Changpeng Zhao to receive a pardon from Trump. This move could pave the way for Binance's return to the US market. In 2023, Binance and Zhao pleaded guilty to violating anti-money laundering rules and were banned from doing business in the US.

Zhao Changpeng currently resides in Abu Dhabi. He obtained UAE citizenship several years ago, has close ties with Tahnoon, and has established close connections with the UAE royal family.

Sources familiar with the matter say that individuals close to the royal family lobbied the Trump administration to pardon Changpeng Zhao, arguing that it would help the world's largest cryptocurrency exchange return to the United States. Pardoning Zhao would also open the door for UAE authorities to issue Binance a full regulatory license, enabling Binance to complete its plan to establish Abu Dhabi as its new global headquarters and boosting the capital's global financial ambitions.

Binance itself is also seeking a return to the US market through the pardon. The Wall Street Journal previously reported that the company has taken several steps to promote the business of World Liberty Financial. Changpeng Zhao denied any business relationship with Trump's cryptocurrency company, while Binance stated that it does not control the stablecoin chosen by MGX and has "limited involvement" in World Liberty Financial's related products. World Liberty Financial denied playing any role in the pardon, with its lawyers stating that its business dealings with Binance were routine. A person close to Steve Witkoff stated that he was not involved in Changpeng Zhao's pardon.

Zhao Changpeng's lawyer, Teresa Goody Guillén, stated that the pardon granted to her client did not allow Binance to enter the US market, and that the UAE has been actively attracting cryptocurrency companies. She described a negative interpretation of Zhao's pardon as an "illegal usurpation of the president's pardon power."

On May 8 last year, the U.S. Treasury Department announced the launch of a fast-track pilot program for foreign investors, which was the result of lobbying by the UAE to expedite the investment review process.

During his visit to Abu Dhabi that month, Trump announced a "very significant agreement" between the two countries regarding the UAE's purchase of US AI chips. Months later, following further negotiations, the Trump administration approved the sale of 35,000 chips to G42, fewer than the UAE had anticipated.

During a May presentation at the royal palace, Trump examined a bright 3D model of the large AI data center project under the G42 plan, with Steve Witkoff and Tahnoon watching. Trump repeatedly mentioned Tahnoon at a local meeting, telling UAE President Mohammed that his "good brother" had recently visited Washington; Tahnoon, in turn, posted a photo of himself with Trump and Witkoff on Instagram.

Trump predicted that the relationship between the two countries "will only get closer and better." He told Mohammed, "Our relationship couldn't be better."

In September, MGX became one of the few investors selected to operate TikTok's U.S. operations, according to an agreement reached by the Trump administration.

On October 22nd last year, Steve Witkoff, Jared Kushner, and Tahnoon posted a photo on social media.

The following month, Trump pardoned Changpeng Zhao, sparking anger among Democratic lawmakers who accused him of selling the pardon power to the highest bidder.

On October 22, the day before the White House confirmed Trump's signing of the pardon, a White House official stated that Witkoff and Kushner returned to Abu Dhabi to discuss Gaza, Israel, and Trump's peace committee plans. Their meeting was with Tahnoon.

WLFI is suspected of testing the transfer function and transferring nearly 200 million tokens to a new address

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