Two Democratic senators want federal investigators to look into potential ethics violations by top Trump administration officials. The probe centers on a $2 billion cryptocurrency deal with the United Arab Emirates that happened just weeks before the U.S. approved major technology exports to that country.
Senators Elizabeth Warren and Elissa Slotkin sent a letter on September 23, 2025, asking three federal oversight agencies to investigate possible conflicts of interest. The letter targets David Sacks, who serves as the White House AI and Crypto Czar, and Steve Witkoff, the U.S. Special Envoy to the Middle East.
Two Connected Deals Raise Red Flags
The investigation focuses on two major deals that happened close together in May 2025. First, a UAE government-backed company called MGX invested $2 billion in World Liberty Financial, a cryptocurrency startup founded by the Trump family and the Witkoff family.
Two weeks later, the Trump administration approved the sale of hundreds of thousands of advanced artificial intelligence computer chips to the UAE. These chips are crucial for AI development and are considered sensitive national security technology.
Sheikh Tahnoon bin Zayed Al Nahyan, who serves as the UAE’s National Security Advisor, controls the investment firm that put money into the Trump crypto company. The same person also controls companies that received access to the AI chips through the government approval.
The senators wrote that this timing creates serious concerns about whether government officials used their positions to benefit financially while potentially compromising U.S. national security.
Officials Had Financial Stakes in the Deals
Both Sacks and Witkoff had personal financial interests that could benefit from these government decisions, according to the senators’ letter. Witkoff co-founded World Liberty Financial with the Trump family and maintains ownership in the company. His son, Zach Witkoff, serves as the company’s CEO and helped arrange the $2 billion UAE investment.
Source: banking.senate.gov
Meanwhile, Sacks continues to manage a venture capital fund called Craft Ventures that receives money from UAE sources, including the Abu Dhabi Investment Authority. This fund also invests in companies that support the USD1 stablecoin issued by World Liberty Financial.
The senators argue that both officials should have removed themselves from government decisions that could benefit their personal finances. Instead, they actively advocated for policies that helped their business interests.
“The pattern of these transactions is deeply troubling,” Warren and Slotkin wrote in their letter to federal agencies. They called the situation one of the most significant conflicts of interest in U.S. foreign policy history.
National Security Concerns Mount
The investigation also highlights national security worries about the AI chip exports to the UAE. Intelligence officials have raised concerns about the UAE’s close ties to China and whether advanced U.S. technology could end up helping China’s military capabilities.
The approved chip sales will increase from about 100,000 per year to 500,000 chips annually. One-fifth of these chips will go directly to G42, a company controlled by Sheikh Tahnoon. This raises questions about whether personal business relationships influenced national security decisions.
Several national security officials reportedly objected to the chip exports, warning that the UAE could help China gain access to advanced AI technology that might be used to develop weapons against American forces.
Trump Crypto Venture Generates Massive Profits
World Liberty Financial has become a major financial success for the Trump family. The company’s WLFI token launched in September 2025 with a market value exceeding $7 billion, making it one of the top 25 cryptocurrencies.
The Trump family controls 75% of the company’s revenue from token sales and 60% of future business operations. Donald Trump serves as “Chief Crypto Advocate,” while his sons Eric, Donald Jr., and Barron Trump hold various leadership roles.
The company also issued a stablecoin called USD1, which MGX used for its $2 billion investment in the cryptocurrency exchange Binance. This arrangement effectively provided World Liberty Financial with $2 billion in bank deposits.
According to analysis, the Trump family has earned $57 million in profits from the venture, even after reducing their stake by 20%.
White House Denies Wrongdoing
The White House has rejected claims of improper conduct. A spokesperson said both Sacks and Witkoff followed proper ethics procedures, including obtaining necessary waivers and removing themselves from conflicting financial interests.
The White House stated that Sacks received an ethics waiver and has no financial stake in the AI chip deal. Officials also said Witkoff is working to sell his interests in World Liberty Financial.
However, the senators argue that these officials continued to participate in government decisions that could benefit their personal finances, even while claiming to follow ethics rules.
The Road Ahead
The senators sent their investigation request to three agencies: the Commerce Department’s Inspector General, the State Department’s Inspector General, and the Office of Government Ethics. These agencies now must decide whether to launch formal investigations.
The probe comes as Congress works on new cryptocurrency regulations. Warren and Slotkin argue that lawmakers cannot consider new crypto rules until they understand how current regulations may have been violated.
The investigation also reflects broader concerns about mixing government service with personal business interests, especially involving foreign governments and sensitive national security technology.
When Politics Meets Profit
This investigation shows how cryptocurrency investments and government policy can create complicated ethical problems. As digital assets become more important in global finance, ensuring that government officials cannot profit from their policy decisions becomes crucial for maintaining public trust and national security.
The outcome of this probe could set important precedents for how government officials handle cryptocurrency investments and foreign business relationships in the future.