In Washington, D.C., U.S. Senators Jeff Merkley from Oregon and Elizabeth Warren from Massachusetts have raised concerns about a reported billion-dollar business deal involving a Trump-backed cryptocurrency company and foreign entities. The Senators are questioning the ethics and national security implications of this deal, which involves the state-backed Emirati investment firm MGX, crypto exchange Binance, and World Liberty Financial (WLF).
Merkley and Warren addressed their concerns in a letter to Office of Government Ethics Acting Director Jamieson Greer. They expressed worry that the deal could enrich President Trump and his family, as well as Steve Witkoff's family, with potential foreign kickbacks amounting to hundreds of millions of dollars.
The Senators stated in their letter: “In short, a crypto firm whose founder needs a pardon and a foreign government spymaker coveting sensitive U.S. technology plan to pay the Trump and Witkoff families hundreds of millions of dollars.” They warned that such arrangements might violate the Emoluments Clause of the U.S. Constitution and federal ethics statutes.
The timing of this deal is particularly concerning due to its proximity to upcoming Senate votes on the GENIUS Act. This legislation lacks restrictions on elected officials' involvement in stablecoin ventures or measures to prevent foreign countries from influencing President Trump through financial dealings with his stablecoin.
According to reports, MGX plans to invest $2 billion in Binance using WLF’s stablecoin USD1. WLF is supported by President Trump’s family, while Steve Witkoff's son co-founded it. The Senators argue that this setup could serve as a channel for foreign kickbacks.
Binance previously settled criminal charges with the Department of Justice in 2023 by paying a $4 billion penalty. Its founder is reportedly seeking a pardon from President Trump. Meanwhile, MGX has close ties with the UAE government, raising further ethical questions.
The Senators are requesting answers from the Office of Government Ethics by May 9, 2025. They seek clarity on guidance provided to federal officials regarding personal financial gain through digital assets and safeguards against conflicts of interest involving high-ranking government officials.