U.S. Lawmakers Urge Investigation into $2 Billion Digital Asset Deal Linked to Trump Family

Democratic lawmakers are intensifying their calls for a federal investigation into a controversial $2 billion digital asset transaction involving former President Donald Trump’s family. With concerns over potential national security risks tied to the deal, Senator Elizabeth Warren and Representative Elissa Slotkin have taken formal steps to demand accountability from multiple federal agencies.

Lawmakers Seek Federal Action

On October 26, international media reported that Senator Warren and Representative Slotkin filed an official request for a probe to the State Department, Commerce Department, and the Office of Government Ethics. Their statement highlighted allegations surrounding key figures involved, including David Sacks and Steve Witkoff, a Middle East envoy.

Trump Family’s Indirect Involvement with World Liberty Financial

Central to the investigation is the Trump family's indirect connection to World Liberty Financial (WLF), a digital asset firm now under scrutiny. Reports claim that WLF played a pivotal role in facilitating the $2 billion transaction through an Emirati investment company known as MGX. Allegedly, MGX collaborated with Binance—one of the world's largest cryptocurrency exchanges—using funds derived from a stablecoin called USD1 issued by WLF.

Link to AI Semiconductor Exports Raises Alarm

Fueling the controversy further is a recent decision by the U.S. government to approve exports of thousands of advanced AI semiconductors to the United Arab Emirates (UAE). This development has sparked fears of a broader quid-pro-quo scenario tied to the digital asset deal. Lawmakers are concerned that foreign entities could use these financial transactions as indirect access points to U.S. innovations in artificial intelligence.

Implications for National Security

“These transactions are much more than typical investments—they represent potential security loopholes that may allow foreign actors to exploit America’s cutting-edge AI technologies,” Senator Warren said. Representative Slotkin added, “Digital asset financing must never dictate decisions that impact national security. There needs to be a clear division between political influence and private financial interests.”

Broader Concerns About Transparency

The situation underscores growing worries about the interplay between private sector operations linked to political figures and broader U.S. national security implications. Lawmakers are advocating for greater transparency and robust regulatory frameworks to prevent private interests from undermining the integrity and security of public-sector decision-making.

This escalating issue illustrates the urgent need to assess how digital asset transactions and emerging technologies intersect with global geopolitics—all while exposing possible vulnerabilities in existing U.S. oversight mechanisms.