Trump's Middle East Business Surge Prompts Conflict of Interest Attacks
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A firm linked to the ruling family of the United Arab Emirates has selected USD1, the stablecoin launched by President Donald Trump's sons, to complete a $2 billion deal with the crypto exchange Binance, prompting attacks from critics who say it could represent a conflict of interest.
Since President Trump returned to office, the businesses run by his family have seen rapidly deepening ties with the UAE, with a string of real estate and investment deals highlighting its growing importance. Countries in the region have also played an important role in Trump's diplomatic initiatives, with the UAE as a key ally.
Newsweek has reached out to the White House, the State Department and to the foreign ministry of the UAE for comment.
The White House has previously said that the businesses are run by Trump's children and there is no conflict of interest.
Why It Matters
The crypto announcement has prompted accusations from Trump's critics due to the involvement of the Trump family in a business venture that intersects with foreign governments.
The deal, backed by the UAE's MGX and led by the country's national security adviser, Sheikh Tahnoon bin Zayed Al Nahyan, underscores the growing financial entanglements between Trump family businesses and the Gulf monarchy.
U.S. Secretary of State Marco Rubio, left, poses for a photo with UAE National Security Advisor Sheikh Tahnoon bin Zayed Al Nahyan at ADNEC Centre Abu Dhabi in Abu Dhabi, United Arab Emirates, Wednesday, Feb....
U.S. Secretary of State Marco Rubio, left, poses for a photo with UAE National Security Advisor Sheikh Tahnoon bin Zayed Al Nahyan at ADNEC Centre Abu Dhabi in Abu Dhabi, United Arab Emirates, Wednesday, Feb. 19, 2025. More
Evelyn Hockstein/AP Photo
What to Know
MGX, a tech investment firm backed by the UAE's Mubadala Investment and AI company G42, announced it will use USD1—a stablecoin launched by the Trump family—for a $2 billion investment in Binance. The deal was revealed at the Token2049 crypto conference in Dubai by Zach Witkoff, co-founder of World Liberty Financial and son of Trump's Middle East envoy, Steve Witkoff.
World Liberty Financial is owned by a Trump family entity, with Eric Trump and Zach Witkoff taking prominent roles in its operations. Their involvement in such a high-stakes deal reflects the Trump family's increasing influence in the digital currency space and in Gulf business circles.
Trump Tower Dubai and Other Ventures
This latest crypto deal follows a series of Trump Organization ventures in the UAE. Most notably, the Trump Organization announced the development of Trump Tower Dubai, an 80-story luxury tower in collaboration with Dar Global. Set for completion in 2031, the tower will include a hotel, residences, and amenities including an outdoor swimming pool at its highest point.
Coming Soon! Trump International Hotel & Tower, Dubai pic.twitter.com/kyyosOfkrF — Eric Trump (@EricTrump) April 30, 2025
Additionally, in March, the UAE pledged $1.4 trillion in investments over the next decade to the United States, with particular focus on artificial intelligence, energy, and semiconductor sectors. This agreement, forged in meetings between President Trump and UAE officials, further strengthens the economic bond between the two nations.
Timing Raises Red Flags
The UAE's significant investment in U.S. sectors like AI and energy has bolstered economic ties between the two nations but has also prompted questions from Trump's criticis about potential foreign influence on American business and politics.
These growing financial connections come just ahead of Trump's May 13–16 visit to the Gulf.
Critics, including Senator Chris Murphy, called the venture "corrupt" and "likely illegal" as Congress debates stablecoin legislation. Senator Elizabeth Warren added on X: "A shady fund, backed by a foreign government, just announced a $2bn deal using Trump stablecoins."
Donald Trump's latest corruption?
A $2 BILLION stablecoin deal with a foreign crypto company that will benefit the Trump family business.
And it gets worse — the Senate is getting ready to bless this kind of grift.
But it's not too late to make changes.
Here's the latest: pic.twitter.com/3IaQOCZTfL — Elizabeth Warren (@SenWarren) May 1, 2025
What People Are Saying
Zach Witkoff, co-founder of World Liberty, said: "We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX's $2bn investment in Binance."
A White House spokesman stated on April 8: "President Trump's assets are in a trust managed by his children. There are no conflicts of interest."
Senator Elizabeth Warren posted on X: "Donald Trump's latest corruption? A $2 BILLION stablecoin with a foreign crypto company that will benefit the Trump family business."
What Happens Next
President Trump's visit to the Gulf is expected to solidify the growing business partnerships with the UAE, further intertwining U.S. political power with Middle Eastern economic interests.
This could further fuel the attacks from critics on the Trump family's involvement in international business.
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