Calls for probe after huge UAE splurge on Trump-linked crypto amid 'chips war'

US President Donald Trump is facing renewed scrutiny over potential conflicts of interest after reports that a senior member of the Emirati royal family invested $500 million in a cryptocurrency firm linked to the Trump family just days before his return to the White House.

The investment, first reported by The Wall Street Journal, involved a 49 percent stake in World Liberty Financial, a crypto company co-owned by Trump family entities and Trump's Middle East envoy Steve Witkoff.

The stake was purchased four days before Trump's inauguration in January 2025 by a firm associated with Sheikh Tahnoon bin Zayed Al-Nahyan, the UAE president's brother, national security adviser, and chairman of major state-backed investment vehicles.

Ethics experts say the timing and scale of the deal raise serious concerns about a conflict of interest, particularly as the Trump administration later approved the export of hundreds of thousands of advanced artificial intelligence chips made by Nvidia to the United Arab Emirates, reversing restrictions imposed under the previous administration over fears the technology could be diverted to China.

According to documents reviewed by the WSJ, roughly half of the $500 million investment was paid upfront, amounting to as much as $187 million flowing to Trump-linked entities on the eve of his return to office. The funds were channelled through Aryam Investment, a company backed by Sheikh Tahnoon, the UAE's intelligence chief and a powerful government figure.

World Liberty Financial protocol and crypto platform confirmed the deal but rejected any suggestion of political influence.

A spokesperson told ABC News that neither Trump nor Witkoff had any involvement in the transaction and insisted that claims linking the investment to US policy decisions on AI chips were "100% false".

The White House also denied any wrongdoing; officials say Trump has no role in managing his businesses, which are overseen by his children, and argue that allegations of constitutional violations are unfounded.

White House counsel David Warrington said the president carries out his duties "in an ethically sound manner".

Unlike most modern presidents, Trump did not place his assets in an independently managed blind trust; instead transferring control to family members.

Since leaving office in 2021, Trump-linked businesses have expanded aggressively into sectors including social media, streaming, financial services and cryptocurrency.

World Liberty has since become one of the Trump family's most valuable ventures. US media have reported that the launch of its digital token generated billions of dollars in value for its owners, further intensifying scrutiny of foreign investment in the firm.

Additional questions emerged last May when MGX, an Emirati AI investment company chaired by Sheikh Tahnoon, announced it would use a digital token issued by World Liberty to finance a $2 billion investment in the crypto exchange Binance.

Weeks later, the Trump administration confirmed the Nvidia chip exports, allowing the UAE to position itself as a major AI hub.

National security analysts warn that the transfer of advanced US chips could undermine Washington's technological advantage over China.

AI policy advocates have cautioned that such technology could be repurposed for cyber warfare or advanced weapons development if it were to fall into hostile hands.

MGX has also expanded its footprint in sensitive technology sectors, including by taking a significant stake in the new TikTok US joint venture, further fuelling concerns about the concentration of foreign influence.

Democrats have called for a congressional investigation, though Republicans hold majorities in both chambers. Senator Elizabeth Warren described the arrangement as "corruption, plain and simple", urging the administration to reverse the decision to export advanced AI chips to the UAE.