Nederlands
English
Deutsch
Français
Español
Português
Emirati Royal's Pre-Inauguration Investment Raises Ethics Questions
Just four days before President Donald Trump's second inauguration in January 2026, a controversial $500 million investment deal was quietly signed that has now erupted into a major political scandal. Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security advisor often called the 'Spy Sheikh,' purchased a 49% stake in the Trump family's cryptocurrency company, World Liberty Financial, through one of his investment vehicles.
The deal, first reported by The Wall Street Journal, saw Eric Trump sign on behalf of World Liberty Financial, with the transaction funneling $187 million to various Trump family funds and $31 million to entities linked to Steve Witkoff, who had already been appointed by Trump as Middle East envoy.
The 'Spy Sheikh' and His AI Ambitions
Sheikh Tahnoon is no ordinary investor. As brother to UAE President Mohammed bin Zayed Al Nahyan and controller of the country's $1.3 trillion sovereign wealth fund, he wields enormous influence. According to Wikipedia, Tahnoon chairs G42, an artificial intelligence company that has previously drawn scrutiny for its ties to sanctioned Chinese firms like Huawei. During the Biden administration, the U.S. blocked exports of AI hardware to G42 over national security concerns.
'This is corruption, plain and simple,' declared Senator Elizabeth Warren in a scathing statement. 'The Trump Administration must reverse its decision to sell sensitive AI chips to the United Arab Emirates.'
The AI Chip Connection
What makes this investment particularly controversial is what followed. Just two months after Tahnoon's White House visit following the inauguration, the Trump administration approved the export of 500,000 advanced AI chips annually to the UAE. Remarkably, about one-fifth of these chips—approximately 100,000 units—were designated for Tahnoon's company, G42.
This approval came despite previous administration concerns about G42's connections to Chinese technology firms. As CNBC reported, the timing has raised serious questions about whether the investment influenced policy decisions.
World Liberty Financial and USD1 Stablecoin
World Liberty Financial, the Trump-backed cryptocurrency venture, launched its USD1 stablecoin in March 2025. According to financial reports, the dollar-pegged token has grown to a $5 billion market cap, making it one of the top five stablecoins. The company has applied for a federal trust bank charter to place its operations under direct U.S. oversight.
The White House has pushed back against corruption allegations. 'President Trump acts only in the interest of the American people,' a spokesperson stated, maintaining that Trump's assets are in a trust managed by his children. However, ethics experts note this arrangement lacks the independent trustee typically required for blind trusts.
Congressional Scrutiny Intensifies
Senator Warren is demanding congressional hearings, calling for Trump administration officials including Steve Witkoff and Commerce Secretary Howard Lutnick to testify about whether they 'sold out American national security' to benefit the President's crypto company. She has called on Congress to 'grow a spine' to address what she terms 'Trump's crypto corruption.'
The controversy highlights ongoing concerns about foreign influence in American politics and the intersection of cryptocurrency, national security, and presidential business interests. With the UAE-Trump relationship under intense scrutiny, this story continues to develop as more details emerge about the complex web of investments and policy decisions.
