Controversial stablecoin deal announced ahead of Trump’s Middle East visit sparks conflict of interest concerns
A cryptocurrency project led by the Trump family is poised to receive a $2 billion investment from MGX, an Emirati firm backed by Abu Dhabi’s sovereign wealth fund, in a move that has triggered a wave of scrutiny and accusations of potential conflicts of interest.
The investment will involve the use of USD1, a stablecoin developed by World Liberty Financial, a crypto venture launched last autumn and majority-owned by the Trump family. The stablecoin is designed to mirror the value of the US dollar.
The company’s website lists former US President Donald Trump as “chief crypto advocate,” with his sons Eric, Donald Jr., and Barron Trump named as “web3 ambassadors.” The firm is led by Zach Witkoff, son of Steve Witkoff, Trump’s former Middle East envoy.
The announcement was made by Zach Witkoff at a crypto conference in Dubai, where he appeared on stage alongside Eric Trump. Witkoff stated: “We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX’s $2bn investment in Binance. We thank MGX and Binance for their trust in us. It’s only the beginning.”
The $2 billion transaction is intended to facilitate MGX’s investment in Binance, the world’s largest cryptocurrency exchange, whose founder was recently sentenced to four months in prison for breaching US anti-money laundering and sanctions regulations.
The announcement comes just days before Donald Trump is scheduled to embark on a state visit to the UAE, Qatar, and Saudi Arabia—raising further concerns about the proximity of the deal to international diplomacy.
Criticism was swift. Senator Elizabeth Warren wrote on X (formerly Twitter): “The Senate is gearing up to pass stablecoin legislation that will make it easier for Trump’s family to line their own pockets. This is corruption.”
In response to growing concerns, a White House spokesperson defended the arrangement, stating: “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.”
World Liberty Financial did not provide any public comment following inquiries.
The MGX deal marks one of the most high-profile collaborations between a politically prominent family and a blockchain initiative, further intensifying debate around the regulation of stablecoins and the intersection of public office and private enterprise.
