Original Title: "Spy Sheikh" Bought Secret Stake in Trump Company
Original Authors: Sam Kessler, Rebecca Ballhaus, Eliot Brown, Angus Berwick, The Wall Street Journal
Original Translation: Luffy, Foresight News
According to company documents and sources familiar with the matter, four days before Donald Trump was inaugurated as president last year, an aide to a member of the Abu Dhabi royal family secretly signed an agreement with the Trump family to acquire a 49% stake in its startup cryptocurrency business for $500 million. The buyer paid half of the amount upfront, with $187 million directly transferred to the Trump family entity's account.
This transaction with World Liberty Financial had not been previously reported and was signed by President Trump's son, Eric Trump. Documents show that at least an additional $31 million will flow to family-related entities of the company's co-founder, Steve Witkoff, who was appointed as the U.S. Special Envoy to the Middle East just weeks prior.
Sources say the financier behind this investment is Sheikh Tahnoon bin Zayed Al Nahyan, a member of the Abu Dhabi royal family who has been seeking access to strictly controlled AI chips in the U.S. Tahnoon is sometimes referred to as the "Spy Sheikh"; he is the brother of the UAE president, the country's national security advisor, and the head of the largest sovereign wealth fund in this oil-rich nation. He controls a business empire worth over $1.3 trillion, supported by personal wealth and state funds, with operations spanning various fields from fish farming and AI to surveillance technology, making him one of the most powerful individual investors globally.
This transaction is unprecedented in U.S. political history: a foreign government official acquired a significant stake in a company owned by an incoming U.S. president.
During the Biden administration, Tahnoon's efforts to obtain AI hardware were largely thwarted due to concerns about sensitive technology potentially flowing to China. Particularly alarming to U.S. intelligence officials and lawmakers is Tahnoon's AI company, G42, which has close ties to sanctioned tech giant Huawei and other Chinese firms, raising multiple alarms. Although G42 claims it has severed ties with China by the end of 2023, U.S. concerns remain.
Trump's victory reopened doors for Tahnoon. Sources indicate that in the following months, Tahnoon met multiple times with Trump, Witkoff, and other U.S. officials, including during a March visit to the White House, where the sheikh expressed a strong desire to collaborate with the U.S. in areas like AI.
Two months after the March meeting, the Trump administration committed to providing this Gulf nation with approximately 500,000 advanced AI chips annually, enough to build one of the largest AI data center clusters in the world. The Wall Street Journal previously reported that the framework agreement stipulated that about one-fifth of the chips would go to G42.
The agreement is widely seen as a significant victory for the ruling family of the UAE, breaking through long-standing U.S. national security concerns and allowing the country to compete with the world's strongest economies in the cutting-edge field of AI. Supporters of the agreement praise it for attracting massive investments to the U.S. and helping establish global standards for American technology.
What was previously unknown is that Tahnoon's envoy signed the agreement to acquire a 49% stake in World Liberty Financial back in January of that year.
Last May, Trump visited Abu Dhabi
In March last year, Tahnoon met with Trump and other U.S. officials at the White House
Details of the $500 Million Transaction
Documents show that of the initial $250 million paid by Tahnoon-backed Aryam Investment 1, $187 million was directly transferred to the Trump family entities DT Marks DEFI LLC and DT Marks SC LLC. In addition to the funds flowing to Witkoff family entities, another $31 million was directed to entities associated with co-founders Zak Folkman and Chase Herro. The Wall Street Journal has yet to determine the specific allocation of the remaining $250 million investment that Aryam is required to pay by July 15, 2025.
The agreement makes Aryam the largest shareholder of World Liberty Financial and the only known external investor besides the company's founders. Documents indicate that the deal secured Aryam two seats on the five-member board of World Liberty Financial, with the two Aryam executives appointed as directors also holding executive positions at Tahnoon's G42; at that time, board members included Eric Trump and Zach Witkoff (Steve Witkoff's son).
After Trump's victory, his real estate company has sought partnerships with foreign businesses, and the president himself has accepted gifts from foreign governments, including a $400 million luxury jet from Qatar. However, the World Liberty Financial transaction is the only known instance of a foreign government official purchasing a significant stake in a company owned by Trump after his election.
Information disclosed on the World Liberty Financial website shows that the Trump family's equity stake dropped from 75% last year to 38%, indicating that an external party has purchased shares, but the company has never disclosed the identity of the buyer.
In the weeks leading up to the announcement of the U.S.-UAE chip agreement last May, World Liberty Financial CEO Zach Witkoff announced that an investment company led by Tahnoon, MGX, would use stablecoins issued by World Liberty Financial to complete a $2 billion investment in the cryptocurrency trading platform Binance. The G42 executive entering the World Liberty Financial board is also a director at MGX, which is jointly owned with G42.
Zach Witkoff promoted the stablecoin collaboration with MGX as a recognition of World Liberty Financial's technology but did not disclose that MGX and World Liberty Financial are led by the same group of people.
David Wachsman, a spokesperson for World Liberty Financial, stated regarding the Aryam investment: "We reached this deal because we firmly believe it is in the best interest of the company's continued growth. The idea that a U.S. private company should adhere to special standards in financing that other similar companies do not have to follow is both absurd and contrary to the American spirit."
He stated that President Trump and Steve Witkoff were not involved in this transaction and have not participated in World Liberty Financial matters since taking office, and Witkoff has never held an operational role at the company. He added that this transaction did not grant any party a channel to intervene in government decision-making or influence policy, "We adhere to the same rules and regulations as other companies in the industry."
A person familiar with Tahnoon's investment matters stated that Tahnoon and his team conducted "months of evaluation" of World Liberty Financial's plans before investing, and he completed the investment with "several co-investors," asserting that this investment did not use G42 funds. "At no point during due diligence or any subsequent phase was this investment discussed with President Trump," the person stated, adding that Tahnoon is a "significant investor" in the cryptocurrency business.
White House spokesperson Anna Kelly stated: "President Trump acts only in the best interest of the American public." She noted that the president's assets are held in a trust managed by his children, "There is no conflict of interest," and stated that Witkoff is committed to "advancing President Trump's global peace goals."
White House legal advisor David Warrington stated: "The president was not involved in any business transactions that may involve his constitutional duties."
He stated that Witkoff strictly adheres to government ethics rules, "He has never, and will not, participate in any official matters that may affect his economic interests," and added that Witkoff has "divested his interests in World Liberty Financial."
A person close to Witkoff stated that the envoy did not participate in negotiations related to G42's AI chips but was briefed on related discussions.
A spokesperson for the Trump Organization stated that the company "places a high value on ethical obligations and is committed to preventing conflicts of interest," and complies with all applicable laws.
The Sheikh's AI Chip Offensive
Trump posed for a photo with UAE President Mohammed during his visit to the UAE last May
After Trump's victory, the UAE hoped for a more cooperative partner in the U.S.
For Tahnoon, obtaining U.S. chips is a top priority. He has been tasked by his brother to lead efforts to make the UAE a global leader in the AI field. During the Biden administration, due to concerns that chips could flow to China, the U.S. only allowed the country to obtain a limited number of chips. Although G42 claims it has severed ties with China by the end of 2023, UAE entities, including other companies under Tahnoon's business empire, still maintain close ties with China.
Tahnoon hopes to be approved for a large number of additional chips to build one of the largest AI data center clusters in the world, requiring power equivalent to the output of two Hoover Dams. Tahnoon and his aides plan to lobby vigorously for support from Trump's new administration.
Tahnoon has already had business dealings with the Trump family through Trump's son-in-law Jared Kushner, whose investment firm raised $1.5 billion from a Tahnoon-backed company in Qatar in 2024.
Shortly after the election, Trump appointed his longtime friend and golf partner Steve Witkoff as the Middle East envoy. Witkoff quickly acted to inform Biden administration officials of his plans to reach out to contacts in the Middle East and would visit the UAE, Qatar, Saudi Arabia, and Israel before taking office.
In early December 2024, the trip to the UAE served dual purposes of diplomacy and cryptocurrency. Witkoff, who assisted in founding World Liberty Financial in September, attended a cryptocurrency conference in Abu Dhabi, where he interacted with crypto giants and Eric Trump in the VIP room. During his keynote speech, Eric Trump declared to the Emirati audience, "Our family loves you."
The Wall Street Journal previously reported that Witkoff also met with Tahnoon as part of a series of discussions in the region, addressing issues including a ceasefire in Gaza.
About a week after Witkoff's trip, two entities were registered in Delaware and Abu Dhabi within two days, without disclosing any ownership information. Both companies share the same name: Aryam Investment 1.
Company records reviewed by The Wall Street Journal show that the Delaware Aryam company is managed by executives from G42, which is under Tahnoon; the Abu Dhabi entity shares an office address in the UAE with several other companies under the sheikh's business empire.
Weeks later, on January 16, 2025, Aryam signed the $500 million deal with Trump and Witkoff's World Liberty Financial.
The Network of Interests Behind the Deal
At the time the investment was made, World Liberty Financial had no products and had only raised $82 million by issuing a token called WLFI. Documents indicate that Aryam's investment did not grant it rights to future WLFI token sales, meaning this Tahnoon-backed entity was excluded from the company's only source of revenue at that time.
The agreement for Aryam to acquire shares in World Liberty Financial was signed by G42's General Counsel, Martin Edelman, and G42's CEO, Peng Xiao. The deal also involved Tahnoon's personal investment company, Royal Group, for which Edelman also serves as an advisor.
Edelman and Xiao entered the board of World Liberty Financial, but the company's website does not list them among the team.
The two played a key role in lobbying the Trump administration for chip access in the UAE.
Fiacc Larkin, G42's head of crypto and blockchain, joined World Liberty Financial as Chief Strategy Advisor in January 2025. His LinkedIn profile indicates he also provides advisory services to the Abu Dhabi Department of Economic Development, a government agency.
For years, G42 has been closely monitored by Biden administration officials and Republican lawmakers. In 2024, Republican lawmakers called for an investigation into the risks of China obtaining sensitive U.S. technology through the company.
Born in China, Peng Xiao attended university in Washington, D.C., and after obtaining U.S. citizenship, he renounced it to acquire UAE nationality. During the Biden administration, Peng himself was also scrutinized.
In 2024, a Republican committee chair stated in a letter to the Department of Commerce that documents indicated a "vast network" behind Peng, consisting of UAE and Chinese companies.
Trump met with Mohammed during his visit last May. G42 CEO Peng Xiao was present (second from left).
G42 denied the allegations in the letter in a statement, claiming the company had ceased cooperation with Chinese firms.
Edelman is a well-known real estate attorney in New York and has built a network in the UAE over decades. He provides advisory services to the UAE royal family and serves on the boards of several Tahnoon-owned companies, including G42 and MGX. He has also been a longtime friend of Witkoff, publicly praising him after the election.
Company documents reviewed by The Wall Street Journal indicate that this share acquisition deal brought substantial profits to the founders of World Liberty Financial, with the Trump family, Witkoff family, and entities associated with Folkman and Herro quickly reaping financial returns. Trump's disclosure documents show that by the end of 2024, he personally held 70% of DT Marks DEFI, with the remaining 30% held by other family members; he did not disclose the ownership structure of DT Marks SC.
Ethical and Legal Controversies
Analysis of the investment transaction details.
Trump has long faced criticism for retaining control of his private business empire and profiting from overseas earnings during his presidency. During his first term, Democratic lawmakers sued Trump, accusing him of profiting from foreign governments patronizing his businesses, violating the Constitution's "Emoluments Clause." Trump called it political persecution, while the Justice Department stated that Trump's profit-sharing did not constitute emoluments, and the Supreme Court ultimately declined to hear the case.
During his second term, Trump's real estate holding company, the Trump Organization, stated that it would not enter into new contracts with foreign governments during the president's term, but it did not restrict new collaborations with foreign private enterprises, a relaxation compared to the first term. The company stated it would donate profits obtained from identifiable foreign government officials in its hotel and other businesses to the U.S. Treasury. World Liberty Financial made no such commitment.
Legal experts suggest that the transaction with Aryam may violate the Emoluments Clause, and the timing of the UAE chip agreement closely coincides with the World Liberty Financial transaction, constituting a significant conflict of interest.
Kathleen Clark, a law professor at the University of Washington and former ethics lawyer for the D.C. government, stated that the clause aims to prevent any government official from "being bought by foreign governments." "This clearly appears to violate the Foreign Emoluments Clause, and more importantly, it looks like a bribe."
She stated that this transaction "should trigger a five-alarm warning for the federal government."
Ty Cobb, who served as a senior legal advisor in the White House during Trump's first term, stated that Trump's conflicts of interest far exceed those of previous presidents, "It's like a B52 bomber flying overhead while you're complaining about a kayak." "As an ethics lawyer, my advice would be very clear: do not engage in business transactions with the families of foreign leaders. It tarnishes U.S. foreign policy."
A White House official stated that World Liberty Financial's business is unrelated to Trump, so any emoluments-related allegations are "false and irrelevant." White House legal advisor Warrington stated that Trump "fulfills his constitutional duties in an ethical manner."
From Chip Deals to Binance Pardons
Trump and Mohammed visited a model of an AI data center project during last May's visit.
After acquiring a stake in World Liberty Financial, Tahnoon's efforts to secure AI chips accelerated.
The sheikh hosted CEOs of top global tech and finance companies at the Abu Dhabi royal estate and frequently posted photos of these meetings on Instagram, most of which took place on a set of white sofas. He prepared to commit to investing substantial funds in the U.S. and emphasized that the UAE is now tied to the U.S. in the AI field.
On the first day of Trump's presidency (five days after Aryam signed the agreement with World Liberty Financial), the president announced at the White House that OpenAI and SoftBank planned to create a $500 billion AI data center project, with Tahnoon's MGX being one of the other two designated investors. The project has yet to advance.
In the spring of last year, Trump administration officials began discussing the framework for a chip agreement with the UAE. Some officials did not see a national security risk, while others still held the previous administration's concerns that technology could ultimately flow to China. Insiders stated they discussed proposals to limit chip control in the agreement, one of which was to exclude UAE companies like G42 from direct access channels, requiring that technology be held by American partners like Microsoft and OpenAI.
In March, Tahnoon led a delegation to Washington, where, in addition to the chip agreement, he also planned to push for expedited government reviews of UAE investments in the U.S. He met with Trump in the Oval Office and promised that the UAE would invest $1.4 trillion in the U.S. over the next decade. An insider stated that this commitment greatly excited the president, although government officials found it difficult to understand the specifics of the promise.
On March 18, Trump hosted a dinner at the White House for Tahnoon and his delegation, inviting the vice president, secretary of state, secretary of commerce, secretary of the treasury, and other cabinet members to attend. Tahnoon sat next to Witkoff, and Edelman sat at the end of the table. Trump later posted photos on Truth Social, promoting the "bonds of friendship" between the two countries, stating that they discussed strengthening cooperation in the economic and technological fields.
Former national security officials expressed shock at the level of reception Tahnoon received. During the Biden administration, visiting foreign officials typically only met with their U.S. counterparts, not the president and six cabinet members.
Meanwhile, Tahnoon's ties to World Liberty Financial grew increasingly close. In May, Zach Witkoff announced at a cryptocurrency conference in Dubai that the sheikh's investment company MGX would use the stablecoin USD1 issued by World Liberty Financial to complete a $2 billion investment in Binance, the largest single investment in the history of cryptocurrency companies. Zach Witkoff smiled and thanked MGX "for their trust in us."
This move positioned USD1 among the largest stablecoins globally, enhancing its financial credibility and providing World Liberty Financial with a $2 billion cash reserve. The company used these funds as reserves to maintain the stablecoin's 1:1 peg to the dollar and invested the funds in U.S. Treasury bonds to earn interest, which could generate about $80 million in returns if held for a year.
MGX stated to The Wall Street Journal last year that it chose USD1 after evaluating stablecoins across multiple platforms and considering factors such as "business applicability." A spokesperson for World Liberty Financial stated that USD1 is a "superior product."
Neither company has ever disclosed the fact that MGX and World Liberty Financial share management.
In fact, the Aryam deal laid the groundwork for the launch of USD1. This investment was split between two newly established entities of World Liberty Financial, with one responsible for operating the new stablecoin product and the other managing the company's remaining business.
Sources close to the company stated that G42's Larkin is in charge of the USD1 project at World Liberty Financial.
Tahnoon's $2 billion investment in Binance through MGX means he has a financial interest in pushing for a Trump pardon for Binance founder CZ. This move could pave the way for Binance's return to the U.S. market. In 2023, Binance and CZ were banned from operating in the U.S. after pleading guilty to violating anti-money laundering rules.
CZ currently resides in Abu Dhabi, having obtained UAE citizenship years ago, and has a close relationship with Tahnoon, establishing strong ties with the UAE royal family.
Insiders say that individuals close to the royal family lobbied the Trump administration for CZ's pardon, arguing that it would help the world's largest cryptocurrency exchange return to the U.S. A pardon for CZ would also open the door for UAE authorities to issue Binance a comprehensive regulatory license, completing Binance's plan to establish Abu Dhabi as its new global headquarters and boosting the capital's global financial ambitions.
Binance itself is also seeking to return to the U.S. through a pardon. The Wall Street Journal previously reported that the company has taken several steps to promote the development of World Liberty Financial's business. CZ denied any business relationship with Trump's cryptocurrency company, while Binance stated it does not control the stablecoin chosen by MGX and has "limited involvement" with World Liberty Financial's related products. World Liberty Financial denied playing any role in the pardon, with its lawyers stating that its business dealings with Binance are routine operations. A person close to Steve Witkoff stated that he was not involved in the CZ pardon matter.
CZ's lawyer, Teresa Goody Guillén, stated that the pardon for her client did not allow Binance to enter the U.S. market, as the UAE has been broadly attracting cryptocurrency companies. She claimed that negative interpretations of CZ's pardon are "an illegal usurpation of presidential pardon power."
On May 8 of last year, the U.S. Treasury announced the launch of a fast-track pilot program for foreign investors, which was precisely the investment review acceleration process lobbied for by the UAE.
During Trump's visit to Abu Dhabi that month, he announced that the two countries had reached "a very significant agreement" regarding the UAE's purchase of U.S. AI chips. Months later, after further negotiations, the Trump administration approved the sale of 35,000 chips to G42, fewer than the UAE had anticipated.
During a May demonstration at the royal palace, Trump closely examined the bright 3D model of the large AI data center project that G42 planned to develop, with Steve Witkoff and Tahnoon watching nearby. Trump repeatedly mentioned Tahnoon at local meetings, telling UAE President Mohammed that his "good brother" had just visited Washington; Tahnoon posted photos with Trump and Witkoff on Instagram.
Trump predicted that the relationship between the two countries "will only get closer and better." He told Mohammed, "Our relationship is already so good that it can't get any better."
In September, according to an agreement negotiated by the Trump administration, MGX became one of the few selected investors to operate TikTok's U.S. business.
On October 22 of last year, Steve Witkoff, Jared Kushner, and Tahnoon posted a photo on social media.
The following month, Trump pardoned CZ, sparking outrage among Democratic lawmakers who accused him of selling pardons to the highest bidder.
On October 22, the day before the White House confirmed Trump's signing of the pardon, a White House official stated that Witkoff and Kushner returned to Abu Dhabi to discuss Gaza, Israel, and Trump's peace committee plans. Their meeting was with none other than Tahnoon.
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