WSJ Exclusive: UAE Royal Family Secretly Invested in WLFI, Exchanging for Top-Tier U.S. AI Chips
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WSJ Exclusive: UAE Royal Family Secretly Invested in WLFI, Exchanging for Top-Tier U.S. AI Chips
Months before the UAE gained access to U.S.-strictly-controlled AI chips, the U.S. invested $500 million to acquire a 49% stake in World Liberty Financial.
Navigating Web3 tides with focused insightsBy Sam Kessler, Rebecca Ballhaus, Eliot Brown, and Angus Berwick, The Wall Street Journal
Translated by Luffy, Foresight News
According to corporate documents and people familiar with the matter, four days before Donald Trump’s inauguration as president last year, a deputy of an Abu Dhabi royal family member secretly signed an agreement with the Trump family to acquire a 49% stake in their startup cryptocurrency firm for $500 million. The buyer paid half the amount upfront—$187 million directly into Trump-family entities.
This previously unreported deal with World Liberty Financial was signed by President Trump’s son, Eric Trump. Documents show that at least another $31 million will flow to entities affiliated with the company’s co-founder Steve Witkoff—just weeks after Witkoff had been appointed U.S. Special Envoy for the Middle East.
People familiar with the matter said the investment was backed by Sheikh Tahnoon bin Zayed Al Nahyan, an Abu Dhabi royal who has long sought access to tightly controlled U.S. artificial-intelligence chips. Tahnoon, sometimes dubbed the “spy sheikh,” is the brother of the UAE president, the country’s national-security adviser, and head of its largest sovereign-wealth fund. He oversees a business empire worth over $1.3 trillion—funded by both personal wealth and state money—that spans fish farms, AI, surveillance technology, and more, making him one of the world’s most powerful individual investors.
The transaction is unprecedented in U.S. political history: a foreign government official acquiring a large stake in the company of a president-elect.
During the Biden administration, Tahnoon’s efforts to obtain AI hardware were largely blocked amid concerns that sensitive technology could flow to China. U.S. intelligence officials and lawmakers were particularly wary of G42, Tahnoon’s AI company, which maintained close ties to Huawei and other sanctioned Chinese tech firms—raising alarms across Washington. Although G42 claimed it severed ties with China by the end of 2023, U.S. concerns remain unresolved.
Trump’s election victory reopened the door for Tahnoon. People familiar with the matter said that in the months following, Tahnoon met multiple times with Trump, Witkoff, and other U.S. officials—including during a March visit to the White House, when the sheikh conveyed his urgent desire to cooperate with the U.S. on AI and other strategic areas.
Two months after that March meeting, the Trump administration pledged to supply the Gulf nation with roughly 500,000 of the most advanced AI chips annually—enough to build one of the world’s largest AI data-center clusters. As previously reported by The Wall Street Journal, the framework agreement stipulated that about one-fifth of those chips would go to G42.
The deal is widely seen as a major win for the UAE’s ruling family—breaking through longstanding U.S. national-security concerns and enabling the country to compete head-to-head with the world’s strongest economy in cutting-edge AI. Supporters hail it as attracting massive investment to the U.S. and helping American technology set global standards.
What was previously unknown: Tahnoon’s envoy had already signed the agreement in January to acquire the 49% stake in World Liberty Financial.
Trump visited Abu Dhabi in May last year.
In March, Tahnoon met with Trump and other U.S. officials at the White House.
Details of the $500 Million Deal
Documents show that of the $250 million initial payment made by Aryam Investment 1—a company backed by Tahnoon—$187 million went directly to Trump-family entities DT Marks DEFI LLC and DT Marks SC LLC. In addition to funds flowing to Witkoff-affiliated entities, another $31 million went to entities linked to co-founders Zak Folkman and Chase Herro. The Wall Street Journal has not yet determined how the remaining $250 million investment—due by July 15, 2025—will be allocated.
The agreement makes Aryam World Liberty Financial’s largest shareholder—and the only known external investor besides the founders. Documents indicate the deal secured Aryam two seats on World Liberty Financial’s five-person board; the two Aryam executives appointed to the board also hold senior positions at Tahnoon’s G42. At the time, board members included Eric Trump and Zach Witkoff (Steve Witkoff’s son).
After Trump’s election, his real-estate company actively pursued partnerships with foreign businesses, and the president himself accepted gifts from foreign governments—including a $400 million luxury jet gifted by Qatar. But this World Liberty Financial deal stands as the only known case in which a foreign government official purchased a large stake in a Trump-owned company following his election victory.
World Liberty Financial’s official website discloses that the Trump family’s equity stake dropped from 75% last year to 38%, indicating an external party acquired shares—but the company never disclosed the buyer’s identity.
Weeks before the U.S.-UAE chip deal was announced in May last year, World Liberty Financial CEO Zach Witkoff announced that MGX—a Tahnoon-led investment firm—would use the stablecoin issued by World Liberty Financial to complete a $2 billion investment in cryptocurrency exchange Binance. G42 executives who joined World Liberty Financial’s board also serve as directors of MGX, which is jointly owned by G42.
Zach Witkoff promoted MGX’s stablecoin partnership as recognition of World Liberty Financial’s technology—without disclosing that MGX and World Liberty Financial are led by the same group of individuals.
David Wachsman, a spokesperson for World Liberty Financial, said regarding the Aryam investment: “We entered this transaction because we believe it is in the best interest of the company’s continued growth. The notion that a U.S. private company should be held to unique standards in fundraising—standards no other similar company must meet—is absurd and un-American.”
He said neither President Trump nor Steve Witkoff participated in the deal and that both have been uninvolved with World Liberty Financial since taking office; he added that Witkoff never held an operational role at the company. He emphasized that the transaction grants no party access to influence government decision-making or policy: “We abide by the exact same rules and regulations as every other company in our industry.”
A person familiar with Tahnoon’s investment said Tahnoon and his team conducted a “months-long evaluation” of World Liberty Financial’s plans before completing the investment—with “several co-investors”—and confirmed the investment did not draw on G42 funds. “This investment was never discussed with President Trump at any stage, including during due diligence or afterward,” the person said, adding that Tahnoon is a “major investor” in cryptocurrency businesses.
White House spokesperson Anna Kelly said: “President Trump acts solely in the best interests of the American public.” She noted the president’s assets are held in a trust managed by his children—“there is no conflict of interest”—and said Witkoff is working to “advance President Trump’s global peace objectives.”
White House Counsel David Warrington said: “The president has not participated in any commercial transaction that could implicate his constitutional duties.”
He said Witkoff strictly complies with government ethics rules: “He has never participated—and will never participate—in any official matter that could affect his personal financial interests,” adding that Witkoff has “divested his interests in World Liberty Financial.”
A person close to Witkoff said the envoy did not participate in AI-chip negotiations involving G42 but received briefings on related discussions.
A Trump Organization spokesperson said the company “takes its ethical obligations extremely seriously and rigorously guards against conflicts of interest,” and complies with all applicable laws.
The “Sheikh’s” AI-Chip Campaign
Trump and UAE President Mohammed posed together during Trump’s May visit to the UAE.
After Trump’s election, the UAE hoped for a more cooperative partner in Washington.
For Tahnoon, securing U.S. chips was top priority. Tasked by his elder brother, he leads efforts to position the UAE as a global AI leader. During the Biden administration, U.S. concerns about chips flowing to China restricted the UAE to only limited chip access. Though G42 claims it cut ties with China by late 2023, UAE entities—including others within Tahnoon’s business empire—remain closely tied to China.
Tahnoon seeks approval for significantly more chips—to build one of the world’s largest AI data-center clusters, requiring power equivalent to two Hoover Dams. Tahnoon and his deputies plan an aggressive lobbying campaign to secure support from Trump’s new administration.
Tahnoon already had business ties to the Trump family via Trump’s son-in-law Jared Kushner. Kushner’s investment firm raised $1.5 billion in 2024 from a company backed by Tahnoon and Qatar.
Soon after the election, Trump appointed his longtime friend and golfing partner Steve Witkoff as Middle East envoy. Witkoff moved quickly, informing Biden administration officials of his plans to contact regional contacts—and that he would travel to the UAE, Qatar, Saudi Arabia, and Israel before inauguration.
Witkoff’s early-December 2024 trip to the UAE served dual diplomatic and cryptocurrency purposes. Having helped launch World Liberty Financial in September, Witkoff attended a crypto conference in Abu Dhabi, where he mingled with crypto heavyweights and Eric Trump in a VIP room. In his keynote speech, Eric Trump told Emiratis: “Our family loves you.”
As previously reported by The Wall Street Journal, Witkoff also met with Tahnoon—part of a series of regional talks covering issues including a Gaza ceasefire.
Roughly a week after Witkoff’s trip, two entities—identical in name, “Aryam Investment 1”—were separately incorporated in Delaware and Abu Dhabi, with no ownership information disclosed. Corporate records reviewed by The Wall Street Journal show the Delaware entity is managed by executives from G42, Tahnoon’s firm; the Abu Dhabi entity shares an office address in the UAE with several other companies in the sheikh’s business empire.
Weeks later, on January 16, 2025, Aryam representatives signed the $500 million deal with World Liberty Financial—co-founded by Trump and Witkoff.
The Web of Interests Behind the Deal
At the time of the investment, World Liberty Financial had no products, having raised only $82 million via token sales of its WLFI token. Documents show Aryam’s investment does not grant rights to future WLFI token sales—meaning this Tahnoon-backed entity was excluded from the company’s sole revenue source at the time.
The agreement for Aryam to acquire World Liberty Financial shares was signed by Martin Edelman—G42’s general counsel and a key Tahnoon adviser—and Peng Xiao, G42’s CEO. The deal also involved Tahnoon’s personal investment firm Royal Group, for which Edelman serves as an adviser.
Edelman and Xiao joined World Liberty Financial’s board—but the company’s official website does not list them on its team page.
Both played pivotal roles in lobbying the Trump administration in the UAE for chip access.
Fiacc Larkin, G42’s head of crypto and blockchain, joined World Liberty Financial in January 2025 as chief strategy advisor. His LinkedIn profile states he also advises the Abu Dhabi Department of Economic Development—a government agency.
G42 has long drawn scrutiny from Biden administration officials and Republican lawmakers. In 2024, Republican lawmakers requested investigations into risks that China might acquire sensitive U.S. technology through the company.
Peng Xiao, born in China, studied in Washington, obtained U.S. citizenship, then renounced it to become an Emirati citizen. He faced review during the Biden administration.
In 2024, a Republican committee chair wrote a letter to the Commerce Department requesting an investigation, citing documents showing Xiao is backed by a “vast network” linking UAE and Chinese enterprises.
During Trump’s May visit, Trump met with Mohammed. Peng Xiao, CEO of Tahnoon’s AI firm G42, was present (second from left).
G42 denied the allegations in a statement that year, saying it had ceased cooperation with Chinese companies.
Edelman is a prominent New York real-estate lawyer who has cultivated deep ties in the UAE for decades. He advises the UAE royal family and sits on the boards of multiple Tahnoon-backed firms, including G42 and MGX. He is also a longtime friend of Witkoff—and publicly praised Witkoff after the election.
Corporate documents reviewed by The Wall Street Journal show the share-purchase deal generated massive returns for World Liberty Financial’s founders: the Trump family, the Witkoff family, and entities linked to Folkman and Herro all received swift financial payouts. Trump’s disclosure filings show he held a 70% stake in DT Marks DEFI as of the end of 2024, with the remaining 30% held by other family members; he did not disclose the ownership structure of DT Marks SC.
Ethics and Legal Controversy
Breakdown of the investment deal’s details
Trump has long faced criticism for retaining control over his private business empire while in office and earning overseas income. During his first term, Democratic lawmakers sued Trump, alleging he profited from foreign governments patronizing his businesses—violating the Constitution’s Emoluments Clause. Trump called it political persecution; the Justice Department argued his profit-sharing arrangements didn’t constitute “emoluments,” and the Supreme Court declined to hear the case.
In his second term, Trump’s real-estate holding company—the Trump Organization—said it would not sign new contracts with foreign governments while he is president, though it did not restrict new partnerships with foreign private enterprises—a loosening compared to the first term. The company said it would donate profits earned from identifiable foreign government officials staying at its hotels and other businesses to the U.S. Treasury. World Liberty Financial made no such commitment.
Legal experts say the Aryam deal may violate the Emoluments Clause—and that the timing of the UAE chip deal and the World Liberty Financial transaction constitutes a major conflict of interest.
Kathleen Clark, a University of Washington law professor and former ethics lawyer for the Washington, D.C., government, said the clause aims to prevent any government official from being “bought off” by a foreign government. “This clearly appears to violate the Foreign Emoluments Clause—and, more importantly, looks like a bribe.”
She said the deal “should trigger a Level-5 alarm that the federal government has been sold.”
Ty Cobb, who served as White House senior counsel during Trump’s first term, said Trump’s conflicts of interest dwarf those of all prior presidents: “It’s like a B-52 flying overhead while you’re complaining about a canoe.” “As an ethics lawyer, my advice would be unequivocal: Do not do business with the family of a foreign head of state. It corrupts U.S. foreign policy.”
A White House official said World Liberty Financial’s operations are unrelated to Trump—making any emoluments-related claims “false and irrelevant.” White House Counsel Warrington said Trump “fulfills his constitutional duties ethically.”
From Chip Deals to Binance’s Pardon
During Trump’s May visit, Trump and Mohammed toured a model of an AI data-center project.
After acquiring its stake in World Liberty Financial, Tahnoon accelerated his push for AI chips.
The sheikh hosted CEOs of the world’s top tech and finance firms at his royal estate in Abu Dhabi—and frequently posted photos of these meetings on Instagram, often staged on a white sofa. He pledged massive U.S. investments and emphasized the UAE’s AI alignment with America.
On Trump’s first day in office—five days after Aryam and World Liberty Financial signed their agreement—the president announced at the White House that OpenAI and SoftBank planned a $500 billion AI data-center project, with Tahnoon’s MGX named as one of two additional designated investors. That project has yet to advance.
Last spring, Trump administration officials began negotiating the framework of the chip deal with the UAE. Some officials saw no national-security risk, while others echoed the prior administration’s concerns about technology ultimately reaching China. People familiar with the matter said they discussed restricting chip control in the agreement—including one proposal to exclude UAE firms like G42 from direct access, requiring U.S. partners such as Microsoft and OpenAI to hold the technology.
In March, Tahnoon led a delegation to Washington—not only to finalize the chip deal but also to push for faster U.S. government review of UAE investments in America. He met Trump in the Oval Office and pledged $140 billion in UAE investment in the U.S. over ten years. A person familiar with the matter said the pledge thrilled the president—even if administration officials struggled to grasp its specifics.
On March 18, Trump hosted Tahnoon and his delegation for a dinner at the White House, inviting the vice president and cabinet secretaries including State, Commerce, and Treasury. Tahnoon sat beside Witkoff; Edelman sat at the end of the table. Trump later posted photos on Truth Social, touting the “bond of friendship” between the nations and highlighting discussions on strengthening economic and technological cooperation.
Former national-security officials said they were stunned by the reception Tahnoon received. Under Biden, visiting foreign officials typically met only with their U.S. counterparts—not with the president and six cabinet members.
Meanwhile, Tahnoon’s ties to World Liberty Financial grew tighter. In May, Zach Witkoff announced at a Dubai crypto conference that MGX would use World Liberty Financial’s stablecoin USD1 to execute its $2 billion investment in Binance—the largest single investment in a crypto company’s history. Smiling, Zach Witkoff thanked MGX “for its trust in us.”
That move vaulted USD1 into the ranks of the world’s largest stablecoins, boosting its financial credibility—and brought World Liberty Financial $2 billion in cash reserves. The company holds these funds as reserves to maintain USD1’s 1:1 peg to the U.S. dollar and invests them in U.S. Treasury securities, generating roughly $80 million in annual interest if held for one year.
MGX told The Wall Street Journal last year it evaluated stablecoins across multiple platforms, selecting USD1 based on factors including “business suitability.” A World Liberty Financial spokesperson called USD1 a “superior product.”
Neither company ever disclosed that MGX and World Liberty Financial share management.
In fact, the Aryam deal laid the groundwork for USD1’s launch. The investment was split across two newly formed World Liberty Financial entities—one tasked with operating the new stablecoin, the other managing the rest of the company’s business.
People close to the company said G42’s Larkin oversaw the USD1 initiative at World Liberty Financial.
Tahnoon’s $2 billion MGX investment in Binance creates a financial interest for him in securing a Trump pardon for Binance founder Changpeng Zhao—potentially paving the way for Binance’s return to the U.S. market. In 2023, Binance and Zhao pleaded guilty to anti-money-laundering violations and were barred from operating in the U.S.
Zhao now resides in Abu Dhabi, having obtained Emirati citizenship years ago and cultivated close ties with Tahnoon and the UAE royal family.
People familiar with the matter said royal insiders lobbied the Trump administration to pardon Zhao, arguing it would enable the world’s largest crypto exchange to re-enter the U.S. A pardon would also open the door for UAE authorities to grant Binance a full regulatory license—completing Binance’s plan to establish Abu Dhabi as its new global headquarters and advancing the capital’s ambitions as a global financial hub.
Binance itself is seeking re-entry to the U.S. via the pardon. As previously reported by The Wall Street Journal, the company took several steps to boost World Liberty Financial’s business. Zhao denies any commercial relationship with Trump’s crypto venture; Binance says it does not control MGX’s choice of stablecoin and has “limited involvement” with World Liberty Financial’s products. World Liberty Financial denies playing any role in the pardon, and its lawyers describe dealings with Binance as routine. A person close to Steve Witkoff said he was not involved in Zhao’s pardon.
Zhao’s lawyer Teresa Goody Guillén said the pardon did not allow Binance to enter the U.S. market and noted the UAE has long attracted crypto firms broadly. She called negative interpretations of Zhao’s pardon “an illegal usurpation of the presidential pardon power.”
On May 8 last year, the U.S. Treasury Department launched a fast-track pilot program for foreign investors—the very accelerated investment-review process the UAE had lobbied for.
During Trump’s May visit to Abu Dhabi, he announced the two countries had reached “a very significant agreement” on UAE purchases 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 hoped for.
At a May demonstration in a royal palace, Trump closely examined a bright 3D model of G42’s planned massive AI data-center project, with Steve Witkoff and Tahnoon watching nearby. At local conferences, Trump repeatedly mentioned Tahnoon, telling UAE President Mohammed that his “good brother” had recently visited Washington; Tahnoon posted photos on Instagram of himself with Trump and Witkoff.
Trump predicted bilateral relations would “only get closer and better.” He told Mohammed: “Our relationship couldn’t be better.”
In September, under the agreement negotiated by the Trump administration, MGX became one of only a few investors selected to operate TikTok’s U.S. business.
On October 22 last year, Steve Witkoff, Jared Kushner, and Tahnoon posted a photo together on social media.
The following month, Trump pardoned Zhao—sparking anger among Democratic lawmakers, who accused him of selling pardons to the highest bidder.
On October 22, the day before the White House confirmed Trump had signed the pardon order, a White House official said Witkoff and Kushner returned to Abu Dhabi to discuss Gaza, Israel, and Trump’s peace council initiative—with Tahnoon as their meeting counterpart.
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