WSJ: Uncovering How the Witkoff Father and Son Built a Crypto Empire for Trump?

Original Title: The Father Pursues Trump's Diplomatic Deals. The Son Chases Crypto Deals.

Original Authors: Rebecca Ballhaus, Angus Berwick, The Wall Street Journal

Translation: Luffy, Foresight News

In July last year, Steve Witkoff and his son, crypto entrepreneur Zach Witkoff, at the Republican National Convention. Image Source: Bloomberg

A month before President Trump's inauguration, Middle East envoy Steve Witkoff flew to the UAE with two goals: to discuss regional issues with Abu Dhabi royal family member Tahnoon bin Zayed al Nahyan and to attend a cryptocurrency conference. Less than five months later, Witkoff's son, World Liberty Financial co-founder Zach Witkoff, announced at a conference in Dubai that the company had reached an agreement with Tahnoon's company to purchase $2 billion worth of World Liberty's issued cryptocurrency. Witkoff father and son, along with the Trump family (note: the Trump family owns 60% of World Liberty Financial), are expected to share tens of millions of dollars in annual profits.

On May 15, old Witkoff met Tahnoon again, this time to unveil a long-sought UAE deal: to provide the oil-rich Gulf monarchy with millions of advanced American-made computer chips. 68-year-old Steve Witkoff is a longtime friend of Trump's and has been traveling the globe handling diplomatic affairs since becoming an envoy. Meanwhile, 32-year-old son Zach Witkoff and his advisory team have visited at least four countries to advance cryptocurrency transactions aimed at making World Liberty Financial an industry leader.

The parallel transactions of this father-son duo in the UAE vividly illustrate how World Liberty Financial's business efforts intertwine with government affairs. Insider sources revealed that during pitch calls with crypto companies, Zach Witkoff likened Trump to "The Godfather" and indicated that World Liberty would capitalize on the increasingly crypto-friendly regulatory changes in the US. His posts on X platform often mention the work his father has done for the White House. The intertwining of government negotiations with private business deals is rewriting diplomatic rules for some countries seeking to establish ties with the Trump administration. Behaviors, including those of Trump-affiliated parties like the Witkoff father and son, seeking commercial opportunities in the Persian Gulf and other areas since the Trump presidency, have not been previously reported.

Insiders and conference photos and videos posted on social media show that some countries seeking to advance their own affairs have not only hired American lobbyists, sent delegations to Washington to improve relations with the Trump White House, but also met with U.S. officials' family members and their friends. For example, a senior finance minister from Pakistan once met with the wife of U.S. Secretary of Defense Pete Hegseth and a 19-year-old friend of Donald Trump Jr. to discuss digital asset issues.

On May 1, World Liberty Financial co-founder Zach Witkoff (center), crypto entrepreneur Justin Sun (left), and Eric Trump (right), son of Trump, attended the Token2049 cryptocurrency conference held in Dubai. Photo Source: The Wall Street Journal

White House Deputy Press Secretary Anna Kelly stated that Steve Witkoff is divesting his assets, including World Liberty, where he does not hold any "operational role" in the company and will not discuss company or personal matters while in government service. She said Trump is "incredibly proud of Steve's accomplishments." Witkoff does not receive a government salary and travels the world on a private jet without publicly disclosing his finances. He has stated that he will transfer all assets to his sons.

World Liberty spokesperson David Wachsman stated that the company's business dealings are unrelated to the U.S. government, and the company "doesn't even have the ability to discuss official government matters." He said that attempting to characterize a meeting between World Liberty and Witkoff as an ambassador in the same country as a conflict of interest is incorrect and added that "the two are completely unrelated." He denied that Zach Witkoff referred to Trump as the godfather and pointed out that Witkoff is Jewish, not a godfather. The Trump family's real estate company, the Trump Organization, has pledged not to engage in new deals with foreign governments during Trump's tenure. World Liberty has not made such a commitment.

Prior to venturing into the cryptocurrency field, Zach Witkoff worked as a project manager in his father's New York real estate company, the Witkoff Group. In 2020, he took over the family office, and according to his LinkedIn profile, he is "focused on blockchain." He, along with his father and others, founded World Liberty in September, seven weeks before the presidential election. World Liberty issued a cryptocurrency pegged to the dollar called USD1, aimed at helping businesses and individuals transfer funds across borders outside the banking system. According to individuals who have collaborated with the company, World Liberty has marketed the token to foreign governments eager to improve relations with the United States.

In addition to the meeting with World Liberty and UAE officials, Zach Witkoff also met with some senior government officials in Pakistan. Weeks later, these individuals negotiated a ceasefire with India under the Trump administration. He told them that World Liberty could use blockchain technology to "tokenize" the buying and selling of Pakistan's rare earth minerals. Meanwhile, according to a lobbyist working with Pakistan on the deal, Pakistan has been in talks with the United States over a potentially trillion-dollar rare earth and other mineral agreement.

A spokesperson for World Liberty stated that the company's meeting in Pakistan had "nothing to do" with any agreement Pakistan may be negotiating with the Trump administration. Zach Witkoff's advisors and colleagues also met with the Malaysian Foreign Minister and Prime Minister and the President of Kyrgyzstan, and spoke at a Moscow cryptocurrency conference attended by the Russian Deputy Minister of Finance.

Steve Witkoff (second from the left) met Sheikh Tahnoon bin Zayed al Nahyan in Abu Dhabi this month. The photo was posted on Sheikh's Instagram account.

Cryptocurrency exchange Binance founder CZ made some introductions for World Liberty's overseas trip. In 2023, CZ and Binance acknowledged violating U.S. anti-money laundering laws. CZ has been seeking pardon from the Trump administration to have his company re-enter the U.S. market and to end compliance requirements imposed after reaching a settlement with the Department of Justice. A spokesperson for World Liberty stated that CZ and Zach Witkoff are friends, but CZ is not a mediator.

A Binance spokesperson stated that CZ has been advancing "global innovation" in the cryptocurrency industry, and the company is "proud to be able to help the U.S. become the global capital of cryptocurrency."

World Liberty has not publicly disclosed its token buyers but has raised over $550 million through token sales this year. Revealed buyers include: Abu Dhabi-based cryptocurrency trading company DWF Labs, which purchased $25 million worth of tokens; and Chinese-born cryptocurrency entrepreneur Justin Sun, who invested $75 million and currently serves as a company advisor. On Thursday night, Justin Sun attended a cryptocurrency-related dinner as a guest with Trump.

According to sources familiar with the matter, the World Liberty team has reportedly been in negotiations with other companies in the Gulf region regarding a potential symbolic acquisition, stating that such a transaction could help with its expansion plans in the United States. A World Liberty spokesperson has denied the company's claim that such a transaction could assist with its expansion plans in the United States.

Since Trump took office, he has been working to weaken government regulation of the cryptocurrency industry. The U.S. Securities and Exchange Commission (SEC) has dismissed more than ten cases against cryptocurrency companies, including a case against Justin Sun, who is known to be World Liberty's largest external investor. World Liberty's business has been thriving. Thanks to collaboration with the UAE, the USD1 launch became the fifth-largest stablecoin by global market cap just one month after its introduction. Binance launched USD1 trading on Thursday, a move that could boost demand for the token.

"This is just the beginning," Zach Witkoff posted on X in May.

Cryptocurrency Connection

Weeks after Trump's victory in the 2024 election, his old friend from the New York real estate world, Steve Witkoff, embarked on a trip to the Middle East. According to sources, shortly after Trump's win, Witkoff was appointed as a Middle East envoy, expressing to Biden administration officials his desire to start rebuilding connections in the region.

During his time in Abu Dhabi, Witkoff attended a cryptocurrency conference and privately interacted with other crypto entrepreneurs who later became key figures in World Liberty, including Justin Sun and CZ. Witkoff told attendees that cryptocurrency would rapidly advance under Trump's presidency. Zach Witkoff was not present at the time as his wife was giving birth. They named their son Don, after the President. He and his brother Alex have taken over World Liberty.

According to The Wall Street Journal, father Steve, who was not familiar with the cryptocurrency technology, was involved in negotiations between CZ's cryptocurrency exchange platform Binance and representatives of the Trump family. Witkoff and CZ both denied involvement in the negotiations. As Trump's inauguration day approached, some countries began exploring new ways to establish connections. During Trump's first term, U.S.-Pakistan relations were tense, with the U.S. suspending $300 million in military aid to Pakistan in 2018, with Trump repeatedly criticizing the country for not doing enough to combat extremist groups.

To seek a fresh start, in early January of this year, Pakistan hired American lobbyists to help arrange a meeting in Washington during the Trump administration, with Pakistan's Interior Minister calling for more U.S. investment.

In late January, Texas financier and close friend of Donald Trump, Gentry Beach, led an investor delegation to meet with Pakistani Prime Minister Shehbaz Sharif and his cabinet, expressing interest in investing billions of dollars in luxury real estate and Pakistan's mineral sector (rich in lithium and other rare earth minerals). Earlier in the month, at an event at the Mar-a-Lago estate, Beach boasted about his opportunity to interact with foreign government leaders post-Trump's election victory. "They treat me like they treat President Trump," he said.

Beach's 20-year-old son, Gentry Beach Jr., met with Pakistani Finance Minister Muhammad Aurangzeb in Islamabad in February to discuss opportunities for developing the cryptocurrency industry in Pakistan. The Pakistani Finance Ministry sees cryptocurrency as a way to attract cautious foreign investors and revitalize the sluggish economy. Alongside Beach Jr., a Dubai sheikh, a Russian tech executive, and a co-founder of the crypto project IslamicCoin also attended the meeting. Beach stated that his son did not know the other attendees and never represented himself as having any affiliation with the U.S. government.

Another American with ties to the Trump administration also attended the meeting: Keli Whitlock, Chief Business Officer of a U.S. blockchain company. His sister is married to U.S. Secretary of Defense Hegseth.

An insider revealed that Pakistani officials do not consider Beach a suitable candidate to help Pakistan become a regional leader in cryptocurrency. The Finance Minister ordered the establishment of a National Cryptocurrency Committee to oversee the drafting of cryptocurrency regulations in hopes of attracting investors. He appointed Pakistani tech entrepreneur Bilal bin Saqib as the head, who attended a yacht party in Abu Dhabi hosted by Binance last December and participated in a UAE cryptocurrency conference attended by Steve Witkoff.

Pakistan's Engagement

Pakistan has reasons to expect an improvement in relations with the Trump administration. In late February, the U.S. government exempted $397 million in security assistance to Pakistan from the foreign aid freeze list. Trump, in his State of the Union address, thanked Pakistan for helping in the capture of a terrorist, which pleased Pakistani officials. Lobbying records show that in April, Pakistan signed agreements to pay former Trump bodyguard Keith Schiller and former Trump Organization Chief Legal Officer George Sorial $200,000 per month to serve as advisors to help the country establish a "long-term economic partnership" with the U.S., particularly in the rare earth and critical minerals sectors.

At almost the same time, Binance's CZ went to Pakistan and was appointed as a Strategic Advisor to the Pakistan Crypto Commission. About a week later, World Liberty appointed Pakistani tech entrepreneur Bilal bin Saqib as an advisor, citing his experience in government collaboration.

Now, Pakistan has established connections to Trump. On April 26, a private plane carrying the World Liberty leadership landed in Islamabad. Zach Witkoff and his co-founders Zak Folkman and Chase Herro were greeted by Saqib on the tarmac. During a subsequent ceremony with the Pakistani Ministry of Finance, Witkoff signed a memorandum of understanding, which the Ministry stated would allow World Liberty to help Pakistan become a global crypto leader and utilize their stablecoin USD1 for remittances and trade.

Later that day, the delegation flew to Lahore, where a police convoy escorted them to a centuries-old castle for an evening celebration. In their honor, fireworks lit up the sky, accompanied by Coldplay's "Fix You." In a fireside chat recording at Lahore's Shalimar Gardens, Witkoff said, "You sit on trillions of dollars' worth of rare earth minerals." A spokesperson for the U.S. Embassy in Pakistan stated that supporting digital asset development is a policy of the Trump administration, calling it a "new area of diplomatic work" for the U.S. Embassy in Pakistan. The Pakistani Ministry of Finance declined to comment, and the Pakistani Embassy in the U.S. did not respond to requests for comment.

Lobbying records indicate that during the meeting between the Finance Minister and World Liberty, there was also an attempt to arrange a meeting with the Trump administration. In April, Pakistan's Finance Ministry engaged a U.S. lobbying firm for $25,000 per month, and in early May, the firm contacted a ministry official to discuss arranging a call with the minister. Pakistani lobbyist Robert Seiden stated that negotiations for rare earth mineral transactions with the U.S. government are progressing rapidly. He mentioned that under the new government, countries "realize that as long as they are willing to enter into commercial transactions with the U.S., there is now a path forward." Trump continues to praise Pakistan, stating last week on Fox News, "They are very smart. They make incredible products."

Controversy and Regulatory Scrutiny

From Pakistan, Zach Witkoff traveled to Abu Dhabi to attend a private Binance meeting, meeting with CZ, then proceeded to Dubai to attend the Token2049 conference, where he and Eric Trump announced that Sheikh Tahnoon's company MGX's $2 billion investment in Binance will be paid in World Liberty's USD1 stablecoin. CZ continues to open doors for World Liberty. In May, he traveled to Kyrgyzstan to meet the President and officially join the country's National Crypto Commission. He and a World Liberty advisor also met with the Malaysian government to discuss "digital financial cooperation" between the two countries in terms of crypto regulation.

Some Democratic lawmakers are investigating whether World Liberty's interactions with foreign governments and foreign nationals have violated the law.

Last week, Zach Witkoff posted a letter on the X platform in response to inquiries from Connecticut Democratic Senator Richard Blumenthal. Blumenthal requested details of World Liberty's finances, communication with the Trump administration, and other policy information. In the letter, Witkoff stated that World Liberty has undertaken a "rigorous due diligence" to comply with the law but did not provide the requested records. The letter was signed by Teresa Goody Guillén, an attorney at BakerHostetler law firm, who has also been lobbying for Binance since February.

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