WLFI
U.S. President Donald Trump has promoted World Liberty Financial. WLFI Website / Screenshot

KEY POINTS

  • Sen. Warren believes Trump and his family involved in WLFI will profit from the deal
  • Trump is the 'chief crypto advocate' and his three sons are 'Web3 ambassadors' at WLFI
  • MGX will invest $2 billion into Binance and WLFI's $USD1 stablecoin will be used to close the deal

World Liberty Financial (WLFI), the DeFi project backed by U.S. President Donald Trump and co-founded by his son, Eric Trump, is under scrutiny following a deal with an Abu Dhabi government-backed firm involving the cryptocurrency venture's USD1 stablecoin.

Questions started flooding social media platform X over the weekend as more people started raising concerns about the supposed "shady" deal WLFI secured with Emirati firm MGX that also involves crypto exchange giant Binance.

MGX is backed by Abu Dhabi's sovereign wealth fund, which will make a staggering $2 billion investment in Binance. WLFI enters the picture with its new stablecoin, USD1, which will be used as the payment medium for closing MGX's investment into Binance.

Eric Trump revealed the big news during the Token2049 event in Abu Dhabi last week.

Trump to Profit from 'Shady' Deal?

For some critics, the Trump family, including the president himself, who is listed as WLFI's "chief crypto advocate," will benefit from the questionable deal the DeFi project made with MGX and Binance.

Sen. Elizabeth Warren, D-Mass., on Sunday said the USD1's fast rise as the world's seventh largest stablecoin by market cap was "because of a shady crypto deal with the United Arab Emirates."

She said the foreign power will give the Trumps "a crazy amount of money" in exchange for its use of the USD1 stablecoin. She also urged the Senate to block a bill that she said will only "facilitate this kind of corruption."

She was referring to the GENIUS Act, which could establish the first regulatory framework for stablecoin businesses in the country.

Controversial social media personality and crypto advocate Ed Krassenstein also questioned the deal. "What do you call a royal family using the president's personal coin as a $2 billion conduit?" he wrote on X.

Former U.S. Secretary of Labor Robert Reich said the deal is none other than the American people "witnessing a foreign government effectively bribe the President of the United States – right out in the open."

WLFI Pursues Global Collab Route Despite Concerns

Despite piling concerns about the Trump family's crypto venture and its collaborations with other countries, the project continues to pursue a global path.

Late last month, WLFI announced it had signed a Memorandum of Understanding (MOU) with Pakistan's Crypto Council to push blockchain innovation in the South Asian nation.

Meanwhile, Trump has promoted WLFI and notably, all of his sons are "Web3 ambassadors" at the DeFi project.

Read more