UAE-backed fund to use Trump family's cryptocurrency to buy $2B stake in Binance: report
A United Arab Emirates-backed government fund said it will use a cryptocurrency backed by the family of President Trump as part of a $2 billion purchase of a minority stake in the scandal-tarred digital currency exchange Binance — a move that could pose multiple conflicts of interest.
The deal announced on Thursday between Abu Dhabi-backed MGX and Binance, the world's largest crypto exchange, will be conducted using a digital currency created by World Liberty Financial, the Trump family's cryptocurrency firm.
Zach Witkoff, a founder of World Liberty Financial, revealed to those in attendance at a crypto conference in Dubai that the firm's stablecoin, USD1, will be used in the deal.
5 A cryptocurrency backed by the family of President Donald Trump will be used to facilitate a $2 billion transaction between an Abu Dhabi-backed fund and Binance.
REUTERS
Witkoff was speaking onstage alongside Eric Trump at Token2049, one of the largest global cryptocurrency gatherings with an estimated audience of more than 10,000 industry participants.
The deal provides a major financial boost to World Liberty Financial, a decentralized finance (DeFi) platform founded in 2024.
Donald Trump serves as the company's 'chief crypto advocate,' while his sons, Eric Trump and Donald Trump Jr., hold the title of 'Web3 ambassador.'
Barron Trump is listed as the project's 'DeFi visionary.'
The company was co-founded by Zach Witkoff, son of Steve Witkoff, a real estate developer and Trump associate who is currently serving as the president's envoy to peace talks in the Middle East and Russia.
DeFi is a type of financial system that operates on the internet using blockchain technology — without relying on traditional banks or financial institutions as middlemen.
5 Zach Witkoff, a real estate developer, is co-founder of World Liberty Financial, the Trump family's decentralized finance platform.
AP
'President Trump's assets are in a trust managed by his children. There are no conflicts of interest,' White House spokeswoman Anna Kelly told The Post.
MGX, Binance and Zach Witkoff were not immediately available for comment.
'We thank MGX and Binance for their trust in us,' Witkoff said during the panel. 'It's only the beginning.'
5 Sheikh Tahnoon bin Zayed Al Nahyan (seen right with Secretary of State Marco Rubio on Feb. 19) is chair of MGX, which is backed by the government of the United Arab Emirates.
REUTERS
The involvement of MGX — which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and the brother of the federation's president, Sheikh Mohamed bin Zayed Al Nahyan — further underscores the geopolitical implications.
Sheikh Tahnoon recently held high-level meetings in Washington with President Trump and senior administration officials.
The use of a Trump-backed coin in a state-directed investment deal raises questions about favoritism, influence-peddling and the integrity of US foreign policy.
Binance's role adds another layer of controversy.
In 2023, the exchange pleaded guilty to violating anti-money-laundering laws and was placed under federal oversight by the Treasury Department.
Its founder, Changpeng Zhao, served four months in federal prison and is now reportedly seeking a pardon from the Trump administration.
The firm's involvement in a deal that funnels billions through a Trump-linked coin draws scrutiny at a time when Zhao's future hinges in part on White House decision-making.
World Liberty's business model benefits directly from the deal.
5 MGX is buying a minority stake in Binance, the world's largest cryptocurrency exchange which was founded by Changpeng Zhao.
REUTERS
Stablecoin issuers like World Liberty earn returns by investing the deposits they receive in exchange for their digital tokens.
With $2 billion potentially now in play, the Trump family and its partners could stand to gain tens of millions of dollars annually from the interest alone.
Since launching World Liberty in September 2023, the Trump family has raised $550 million from the sale of $WLFI tokens — with a portion of the proceeds flowing to a Trump-controlled entity.
5 Eric Trump (far right), executive vice president of the Trump Organization, speaks as co-founder of World Liberty Financial Zach Witkoff (center) and TRON founder Justin Sun look on at a crypto conference in Dubai on Thursday.
AP
Some of the purchasers include foreign nationals barred by law from contributing to American political campaigns — further raising ethical and legal concerns.
Eric Trump used the occasion to promote new Trump-branded developments in the UAE and quickly corrected Witkoff when he suggested that USD1 could someday be used at a Four Seasons hotel.
'You're not going to be walking into the Four Seasons using USD1,' Eric said. 'You're going to be walking into the Trump International Hotel and Tower.'
President Trump is preparing for an upcoming state visit to Saudi Arabia, Qatar and the UAE.
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