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Crypto and politics are colliding again.
Senate Democrats are demanding answers from Steve Witkoff, Donald Trump’s special envoy to the Middle East, over his ongoing crypto holdings. The concern is that Witkoff’s private investments could conflict with his public role.
Crypto Stakes in the Spotlight
Eight senators, led by Adam Schiff (D—Calif.), sent a letter asking Witkoff to explain why he still owns stakes in World Liberty Financial (WLF), a crypto firm he co-founded with Trump in 2024.
“Your failure to divest your ownership in these assets raises serious questions about your compliance with federal ethics laws and, more importantly, ability to serve the American people over your own financial interests,” the letter read.
Witkoff has sold a $120 million stake in his real estate company, but he still holds cryptocurrency assets, including shares in WC Digital Fi LLC, WC Digital SC LLC, and SC Financial Technologies LLC.
The $2 Billion UAE Deal
The scrutiny comes after a May deal in which UAE’s MGX invested $2 billion into Binance, paid in WLF’s USD1 stablecoin. That move made USD1 one of the largest stablecoins by market value, generating substantial revenue for WLF.
At nearly the same time, the U.S. signed an agreement with the UAE to build the largest AI campus outside the United States. Lawmakers say the overlap raises questions: while Witkoff’s crypto venture secured foreign funding, he was also handling official negotiations with the same government.
Lawmakers See Red Flags
Senators Elizabeth Warren and Elissa Slotkin have called for a federal probe into the deals. They note potential national security risks, given the UAE’s ties to China, and say the transactions appear to mix personal profit with public duties.
Reports show the Trump family controls 75% of WLF’s token sale revenue and 60% of the company’s operations, earning millions from the venture.
“This pattern of transactions is deeply troubling,” the senators wrote.
Witkoff: Trump’s Longtime Partner
Witkoff has been close to Trump for decades. From lawyer on Manhattan real estate deals to golf buddy and business partner, he eventually co-founded WLF. He has longstanding connections with sovereign wealth funds in the Gulf, including Saudi Arabia, Qatar, and the UAE.
Even while serving as Trump’s envoy, Witkoff promoted WLF at crypto conferences, blending business with his diplomatic role, which is clearly now drawing sharp criticism from lawmakers.
What Happens Next
Witkoff has until October 31 to respond to the Senate letter. Inspectors general are reviewing potential conflicts tied to the $2 billion UAE investment and related AI agreements.
The case highlights how crypto, politics, and international business are increasingly intertwined.
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FAQs
Steve Witkoff is Donald Trump’s Middle East envoy. Senate Democrats are investigating him for potential conflicts of interest due to his ongoing ownership in a cryptocurrency company while conducting official diplomatic duties.
The concern is that Witkoff’s crypto firm received a $2 billion investment from the UAE while he, as a US envoy, was simultaneously negotiating a major US-UAE AI agreement, mixing personal profit with public duty.
The UAE’s MGX invested $2 billion in Binance, paid using WLF’s USD1 stablecoin. This deal massively increased the stablecoin’s value and generated significant revenue for Witkoff and Trump’s company.
