The cryptocurrency world in the United States is experiencing another upheaval. Democratic politicians Elizabeth Warren and Elissa Slotkin are calling for an official ethics investigation into President Donald Trump, his family, and high-ranking officials. The reason is suspicious ties to World Liberty Financial (WLF), co-founded by Trump and his sons.
Letter to government agencies: conflict of interest and security risk
Senator Warren and Representative Slotkin sent a letter this week to several government agencies, specifically the Office of the Inspector General of the Department of Commerce, the Director of the Office of Government Ethics, and the Inspector General of the Department of State. They want an explanation regarding the roles of David Sacks, who serves as the “AI and Crypto Czar” (i.e., the government coordinator for artificial intelligence and cryptocurrencies) in Washington, and Steve Witkoff, the special envoy to the Middle East.
The reason is a suspicion that their activities were related to the business of World Liberty Financial, where Zach Witkoff, the son of the aforementioned envoy, is CEO. Trump’s sons are also directly involved in the project.
According to Warren and Slotkin, these connections could have led to the enrichment of individuals at the expense of US national security. “The pattern of these transactions is deeply troubling,” the senators said in their letter.
Connection under investigation: cryptocurrencies and chips for artificial intelligence
The New York Times (NYT) revealed last week that Trump’s administration was involved in two quick deals. These involved not only World Liberty Financial, but also the export of thousands of cutting-edge American artificial intelligence chips to the United Arab Emirates (UAE). These chips are key in the global race for technological dominance in the field of AI.
According to the NYT, MGX, an investment firm based in the UAE, announced a $2 billion investment in the Binance cryptocurrency exchange. The investment was made through stablecoins, i.e., digital currencies that are pegged to the value of a traditional currency, usually the US dollar. It subsequently emerged that MGX had used the USD1 stablecoin, which World Liberty Financial had recently launched on the market.
Just two weeks later, Donald Trump’s administration granted the United Arab Emirates access to a huge quantity of the latest American chips for artificial intelligence. This raised questions as to whether the two deals were linked.
However, both the White House and World Liberty Financial deny any connection. They have not yet officially responded to direct questions from the media.
The Trump family’s defense: “Crypto was born out of necessity”
Eric Trump defended his family in response to criticism in an interview with CNBC. “My father is the first president who did not profit from his term in office,” he said. He added that banks refused to provide financial services to the Trump family, which is why they turned to cryptocurrencies as an alternative solution.
According to Warren and Slotkin, however, the whole situation shows that Witkoff and Sacks were in a position to directly influence government decisions and personally profit from them.
Political context: upcoming crypto law
The whole affair comes at a time when the US Congress is trying to move forward with comprehensive legislation to create a clear regulatory framework for the cryptocurrency market. The House of Representatives and the Senate have their own proposals, which will have to be merged into a single version in the future.
Senate Banking Committee Chairman Tim Scott originally planned to discuss the proposal before the end of the month. However, the proceedings are likely to be delayed due to the threat of a so-called shutdown, i.e., the closure of some government offices due to budget disputes. Elizabeth Warren is a key Democratic figure on this banking committee.
Warren and Slotkin emphasize that the investigation into Trump’s business dealings is also crucial to the debate on new regulations. “Such unlimited conflicts of interest have no place in the US government,” they conclude in their letter. “Information about these allegations is crucial as Congress prepares legislation for the digital asset market and seeks to prevent corruption in crypto from threatening national security.”
Sources:
https://www.nytimes.com/2025/09/15/us/politics/trump-uae-chips-witkoff-world-liberty.html
https://www.theblock.co/post/370917/ eric-trump-defends-uae-binance-deal-says-his-father-is-first-guy-who-hasnt-made-money-off-of-the-presidencyhttps://www.gallego.senate.gov/wp-content/uploads/2025/09/Market-Structure-Framework-Final.pdf
