Enhanced Anti-Corruption Measures Urged by US Lawmakers
In light of a recent $500 million transaction between an Abu Dhabi-supported entity and World Liberty Financial Invest (WLFI), the primary crypto initiative associated with the Trump family, US lawmakers are advocating for more stringent anti-corruption protocols.
US Congress Scrutinizes WLFI’s UAE-Backed Investment
Recently, Democratic Senator Chris Murphy voiced significant concerns regarding the involvement of United Arab Emirates (UAE) investors in a deal with World Liberty Financial, a crypto company linked to former President Trump. Murphy took to social media to highlight his apprehensions, describing the transaction as a deviation from established national security protocols and characterizing it as blatant corruption that should not be normalized.
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The controversy stems from a Wall Street Journal report, which revealed that Aryam Investment, an entity associated with Sheikh Tahnoon bin Zayed of Abu Dhabi, acquired a 49% stake in WLFI for $500 million shortly before Trump’s inauguration. Sources indicate that half of the amount was paid upfront, with approximately $187 million directed to entities connected to the Trump family. Additionally, at least $31 million reportedly went to affiliates of Steve Witkoff, a co-founder of WLFI and former Middle East envoy.
Following the deal, the Trump administration granted the UAE expanded access to advanced US-made AI chips, despite existing restrictions due to concerns about potential technology transfer to China. Senator Murphy emphasized the secrecy surrounding the transaction, suggesting that it might constitute bribery.
Implications of the Secret Deal
Senator Murphy further stated, “This is a case where they knew it was so outrageous, it was so wrong that they did it in private.” He warned that such actions could be viewed as criminal conduct and highlighted the suspension of the rule of law, asserting its eventual restoration and the accountability of those involved in corrupt practices.
Similarly, Congressman Greg Landsman condemned the deal as “blatant corruption,” criticizing the financial benefits accrued by Trump and the subsequent approval of advanced AI chip access for the UAE. He called for substantial anti-corruption reforms to prevent future secretive transactions.
Trump Refutes Conflict of Interest Allegations
In a recent press conference at the White House, former President Trump denied any involvement in the UAE-backed investment in WLFI. He clarified that his involvement in the crypto firm is limited, as his sons manage its operations. Trump stated, “Well, I don’t know about it. I know that crypto is a big thing, and they like it. A lot of people like it. My sons are handling that. My family is handling it. And I guess they get investments from different people. But I’m not.”
The Trump administration has faced ongoing scrutiny regarding potential conflicts of interest and corruption. Democrats have questioned various government officials, including former SEC acting chairman and the OCC head, about Trump’s crypto ventures.
National Security Concerns
In November, US senators raised alarms about potential national security risks, urging investigations by the Department of Justice (DOJ) and the Treasury Department. They expressed concerns over WLFI’s token sales and the lack of sufficient safeguards to prevent misuse or undue influence by illicit actors.
As the discussion around this deal continues, it remains to be seen how these concerns will be addressed and what measures will be implemented to ensure transparency and accountability in similar transactions.
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