WSJ: Uncovering How the Witkoff Father-Son Duo Built a Cryptocurrency 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
Original 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 objectives: to meet with Abu Dhabi royal family member Tahnoon bin Zayed al Nahyan to discuss regional issues and to attend a cryptocurrency conference. Less than five months later, Witkoff’s son, Zach Witkoff, co-founder of the crypto company World Liberty Financial, announced at a Dubai conference that the company had reached an agreement with Tahnoon’s enterprise to purchase $2 billion of World Liberty's issued cryptocurrency. The Witkoff father and son, along with the Trump family (note: the Trump family holds a 60% stake in World Liberty Financial), are expected to share tens of millions of dollars in annual profits.
On May 15, the elder Witkoff met Tahnoon again, this time to unveil a long-sought deal by the UAE: to secure millions of advanced American-made computer chips for the oil-rich Gulf monarchy. 68-year-old Steve Witkoff, a longtime friend of Trump, has been globe-trotting to handle 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 World Liberty Financial's goal of becoming an industry leader in crypto transactions.
The parallel transactions of this father and son in the UAE vividly illustrate how World Liberty Financial's business efforts are intertwined with government affairs. According to sources familiar with the matter, Zach Witkoff has likened Trump to a "godfather" in introductory calls with crypto companies and has stated that World Liberty will capitalize on America's increasingly crypto-friendly regulatory changes. He often references his father's work for the White House in posts on X platform. The intertwining of government negotiations and private business deals is reshaping diplomatic norms for some countries trying to engage with the Trump administration. The actions of Trump affiliates, including the Witkoff father and son, seeking business opportunities in the Persian Gulf and elsewhere since Trump's inauguration have not been previously reported.
According to sources familiar with the matter and conference photos and videos posted on social media, some countries looking to advance their own agendas have not only hired American lobbyists and sent delegations to Washington to improve their relationship with the Trump White House but have also met with U.S. officials' family members and friends. For example, a senior finance minister from Pakistan met with the sister-in-law of U.S. Secretary of Defense Pete Hegseth and a close friend's 19-year-old son of Donald Trump Jr. (President Trump's eldest son) 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, and does not hold any "operational role" in the company. He will also not discuss company or personal matters during his government tenure. She said Trump is "incredibly proud of Steve's accomplishments." Witkoff does not draw a government salary and travels the world on a private jet, with his current financial situation undisclosed. 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 "does not even have the ability to discuss government official matters." He said that characterizing the meeting between World Liberty and Witkoff Ambassador in the same country as a conflict of interest is incorrect and added that "there is no connection between the two." He denied that Zach Witkoff referred to Trump as the godfather and pointed out that Witkoff is Jewish and has no godfather. The Trump family real estate company, the Trump Organization, has pledged not to engage in new deals with foreign governments during Trump's term. World Liberty has not made such a commitment.
Prior to delving into the cryptocurrency field, Zach Witkoff worked at his father's New York real estate firm, 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 seven weeks before the presidential election in September. World Liberty issued a cryptocurrency pegged to the dollar called USD1, aimed at assisting businesses and individuals in transferring funds across borders outside the banking system. According to individuals who have worked with the company, it has marketed the token to foreign governments eager to improve their relationship with the U.S.
In addition to the meeting with World Liberty and UAE officials, Zach Witkoff also met with some senior government officials in Pakistan, who weeks later 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 on the Pakistan deal, Pakistan has been in talks with the United States over a potentially trillion-dollar rare earth and other mineral deal.
A World Liberty spokesperson stated that the company's meetings in Pakistan had "nothing to do" with any potential agreement Pakistan might negotiate with the Trump administration. Zach Witkoff's advisors and colleagues also met with the Malaysian Foreign Minister and Prime Minister, as well as the President of Kyrgyzstan, and spoke at a cryptocurrency conference in Moscow attended by the Russian Deputy Finance Minister.
Steve Witkoff (second from the left) met with Sheikh Tahnoon bin Zayed al Nahyan in Abu Dhabi earlier this month. The photo was posted on Sheikh's Instagram account
Cryptocurrency exchange platform Binance founder CZ made some introductions for World Liberty on their overseas trip. In 2023, CZ and Binance acknowledged violating U.S. anti-money laundering laws. CZ has been seeking a pardon from the Trump administration to bring his company back into the U.S. market and to end compliance requirements imposed after reaching a settlement with the Justice Department. A World Liberty spokesperson stated that CZ and Zach Witkoff are friends but CZ is not a mediator.
A Binance spokesperson stated that CZ has been driving "global innovation" in the cryptocurrency industry, and the company is "proud 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 this year through token sales. Buyers who have disclosed their purchases include: Abu Dhabi-based cryptocurrency exchange company DWF Labs, which bought $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 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 denied the company's claim that such a deal could assist with its expansion plans in the United States.
Since Trump took office, he has been working to weaken the government's oversight of the cryptocurrency industry. The U.S. Securities and Exchange Commission (SEC) has dismissed over a dozen cases against cryptocurrency companies, including one against Justin Sun, known to be World Liberty's largest external investor. World Liberty's business is booming. Benefiting from collaboration with the UAE, USD1 became the world's fifth-largest stablecoin just one month after its launch. 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 Connections
Weeks after Trump's victory in the 2024 election, his old friend from the New York real estate scene, Steve Witkoff, embarked on a Middle East trip. Sources reveal that 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 engaged in private conversations with other crypto entrepreneurs who later became key figures in World Liberty, including Justin Sun and CZ. Witkoff told attendees that cryptocurrency would see rapid development under the Trump administration. Zach Witkoff was absent 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.
Reportedly, the father Steve, who was not yet familiar with the cryptocurrency technology, was involved in negotiations regarding a deal between CZ's cryptocurrency exchange platform Binance and representatives of the Trump family. Both Witkoff and CZ 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 strained, with the U.S. suspending $300 million in military aid to Pakistan in 2018, as Trump repeatedly criticized the country for not doing enough to combat extremist groups.
In search of a new beginning, in early January of this year, Pakistan hired American lobbyists to assist in arranging a Washington meeting during Trump's inauguration. The Pakistani Interior Minister called for more U.S. investment at the meeting.
In late January, Texas financier and 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 high-end real estate and Pakistan's mineral sector (rich in lithium and other rare earth minerals). Earlier that month, at an event at Mar-a-Lago, Beach boasted of his post-Trump election access to foreign leaders. "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 (former JPMorgan executive) in Islamabad in February to discuss opportunities to develop the cryptocurrency industry in Pakistan. The Pakistani Finance Ministry sees cryptocurrency as a way to attract cautious foreign investors and revitalize a sluggish economy. Also present at the meeting with Beach Jr. were a sheikh from Dubai, a Russian tech executive, and a co-founder of the cryptocurrency project IslamicCoin. Beach mentioned that his son did not know the others present and had 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 did not consider Beach to be the right person 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 had attended a Binance yacht party in Abu Dhabi last December and a cryptocurrency conference in the UAE attended by Steve Witkoff.
Pakistan's Engagements
Pakistan has reasons to expect improved relations with the Trump administration. In late February, the U.S. government exempted $397 million in security aid to Pakistan from the freeze on foreign aid. Trump thanked Pakistan in the State of the Union address for assisting in the capture of a terrorist, which pleased Pakistani officials. Lobbying records show that in April, Pakistan signed agreements to pay $200,000 a month to Trump's former bodyguard Keith Schiller and former Trump Organization Chief Legal Officer George Sorial as advisors to help the country establish a "long-term economic partnership" with the U.S., especially in rare earth and critical mineral sectors.
Around the same time, Binance's CZ traveled 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 a connection 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 on the tarmac by Saqib. During a subsequent ceremony with the Pakistan Ministry of Finance, Witkoff signed a memorandum of understanding, which the Ministry stated would enable World Liberty to assist Pakistan in becoming a global crypto leader and utilize its USD1 stablecoin 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. Fireworks lit up the sky in their honor, with Coldplay's "Fix You" echoing in the night. 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 expressed support for digital asset development as a policy of the Trump administration, calling it a "new frontier of diplomatic work" for the U.S. Embassy in Pakistan. The Pakistan Ministry of Finance declined to comment, and the Pakistani Embassy in the U.S. did not respond to requests for comment.
Lobbying records show that during the meeting between the Finance Minister and World Liberty, efforts were also made to arrange a meeting with the Trump administration. A U.S. lobbying firm hired by Pakistan at a price of $25,000 per month in April engaged with a Finance Ministry official in early May to discuss facilitating a call with the Minister. Pakistani lobbyist Robert Seiden stated that negotiations with the U.S. government on rare earth mineral trade were progressing rapidly. He said that under the new government, countries "realize that as long as they are willing to engage in commercial transactions with the U.S., there is now a path forward." Trump continues to speak positively about Pakistan, stating last week on Fox News, "They are smart; they make incredible products."
Controversies and Regulatory Scrutiny
Departing from Pakistan, Zach Witkoff traveled to Abu Dhabi to attend a private Binance meeting, meeting 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 would 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.
Some Democratic lawmakers are investigating whether World Liberty's interactions with foreign governments and foreign nationals violate the law.
Last week, Zach Witkoff published a letter on the X platform in response to inquiries from Connecticut Democratic Senator Richard Blumenthal. Blumenthal requested financial details from World Liberty, 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, who has also been lobbying for Binance since February.
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