Senators Probe White House Officials Over UAE Crypto Conflicts

The investigation centers on what Senators Warren and Slotkin describe as a severe breach of public trust. The lawmakers allege that Steve Witkoff failed to recuse himself from matters concerning the UAE despite deep personal and family ties to World Liberty Financial (WLF). The senators’ letter highlights that Witkoff’s son, Zach, serves as CEO of WLF, a company that recently received a massive $2 billion investment from MGX, a UAE state-owned entity controlled by the country’s national security advisor, Sheikh Tahnoon. This investment was conducted using USD1, a stablecoin issued by WLF, which the senators argue could generate substantial fees and returns for the firm. The lawmakers contend that Witkoff’s indirect stake may allow him to profit personally from the UAE’s investment, a clear conflict given his role in shaping US policy.

The allegations extend to David Sacks, who remains a general partner in the venture capital firm Craft Ventures. The fund is backed by the Abu Dhabi Investment Authority and holds a stake in BitGo, a firm that works with WLF to manage the USD1 stablecoin. The senators argue that if the UAE’s financial support boosts the stablecoin’s adoption and value, Sacks could benefit financially through his continued involvement with Craft Ventures. This creates a parallel channel of potential private gain from public policy decisions related to the UAE and digital assets.

Beyond the financial conflicts, the senators warn of tangible risks to US national security. They contend that both Sacks and Witkoff pushed to relax US export controls on advanced artificial intelligence systems and supported semiconductor projects in the UAE, including a proposal involving the Taiwan Semiconductor Manufacturing Company (TSMC). Such efforts, the lawmakers argue, undermine US security by creating potential pathways for sensitive dual-use technology to flow to adversaries, notably China. Furthermore, these actions could weaken American efforts to expand domestic chip manufacturing capacity, a key strategic priority.

The letter frames these policy advocacy efforts as directly serving the officials’ private business connections at the expense of the national interest. By championing UAE-based semiconductor projects and looser export controls, the officials are accused of using their public office to advance ventures that could enrich their associated firms and families. The senators describe this as an unprecedented level of conflict in the history of US foreign policy, blurring the lines between national security decision-making and personal financial gain.

Senators Warren, the ranking member of the Senate Banking Committee, and Slotkin, a member of the Senate Agriculture Committee, have called on federal inspectors general to launch a formal probe. Their demand underscores the gravity of the allegations and the potential for crypto-related corruption to undermine governmental integrity. The letter explicitly states that this information is critical as Congress considers legislation for digital asset market structure, aiming to prevent such conflicts from compromising national security in the future.

The case highlights the evolving challenges of regulating financial technologies like stablecoins within the framework of government ethics. The use of USD1 for a major international investment illustrates how digital assets can complicate traditional disclosure and recusal protocols. The involvement of a UAE state entity adds a layer of geopolitical complexity, raising questions about foreign influence. The outcome of this requested investigation could set a significant precedent for how financial entanglements, particularly in the crypto and semiconductor sectors, are managed at the highest levels of the US government.