How did the Witkoff father and son create an encryption empire for Trump?

Authors: Rebecca Ballhaus, Angus Berwick, The Wall Street Journal; Translated by: Luffy, Foresight News

In the 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.

In July last year, Steve Witkoff and his son, cryptocurrency entrepreneur Zach Witkoff, at the Republican National Convention. Photo source: Bloomberg

Less than five months later, Zach Witkoff, son of Witkoff and co-founder of the crypto company World Liberty Financial, announced at a conference in Dubai that the company has reached an agreement with Tahnoon's enterprise, which will purchase $2 billion worth of cryptocurrency issued by World Liberty. The Witkoff father and son, along with the Trump family (note: the Trump family holds 60% of World Liberty Financial), are expected to share tens of millions of dollars in annual profits.

On May 15, old Witkoff met with Tahnoon again, this time to unveil an agreement that the UAE has long sought: to allow this oil-rich Gulf monarchy to obtain millions of advanced American-made computer chips.

68-year-old Steve Witkoff is a longtime friend of Trump and has been traveling around the world handling diplomatic affairs since taking on the role of special envoy. Meanwhile, his 32-year-old son Zach Witkoff and his advisory team have visited at least four countries to advance the cryptocurrency trading aimed at making World Liberty Financial an industry leader.

This father and son duo's parallel trading in the UAE vividly illustrates how World Liberty Financial's business efforts intertwine with government affairs.

According to insiders, Zach Witkoff compared Trump to "The Godfather" during a pitch call with a crypto company and stated that World Liberty will fully leverage the increasingly friendly changes in U.S. crypto regulatory policies. His posts on the X platform often mention the work his father has done for the White House.

The intertwining of government negotiations and private business dealings is rewriting diplomatic rules for some countries attempting to establish connections with the new Trump administration. The actions of Trump affiliates, including the Witkoff father and son duo, seeking business opportunities in regions such as the Persian Gulf since Trump took office have not been reported before.

Insiders and photos and videos of the meeting posted on social media show that some countries seeking to advance their own affairs are not only hiring American lobbyists and sending delegations to Washington to improve relations with the Trump White House, but are also meeting with the family members and friends of U.S. officials. For example, a senior Pakistani finance minister met with the sister-in-law of U.S. Defense Secretary Pete Hegseth, as well as the 19-year-old son of a close friend of Donald Trump Jr. (the president's eldest son) to discuss digital asset issues.

On May 1, Zach Witkoff, co-founder of World Liberty Financial (center), cryptocurrency entrepreneur Sun Yuchen (left), and Eric Trump, son of Donald Trump (right), attended the cryptocurrency conference Token2049 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 that he does not hold any "operational role" in the company, nor will he discuss company or personal matters while in government office. She mentioned that Trump is "immensely proud of Steve's achievements." Witkoff does not receive a government salary and is currently traveling the world on a private jet, with his financial status not publicly disclosed. He has indicated that he will transfer all assets to his sons.

David Wachsman, spokesperson for World Liberty, stated that the company's business dealings are unrelated to the U.S. government, and that the company "doesn't even have the capacity to discuss official government matters." He said it is "incorrect to characterize the holding of a meeting by World Liberty and Ambassador Witkoff in the same country as some sort of conflict of interest," and added that "there is absolutely no connection between the two."

He denied that Zach Witkoff called Trump the godfather and pointed out that Witkoff is Jewish and has no godfather.

The Trump Organization, the real estate company of the Trump family, promised that no new deals would be made with foreign governments during Trump's presidency. World Liberty did not make such a promise.

Before venturing into the cryptocurrency field, Zach Witkoff worked as a project manager at his father's New York real estate company, Witkoff Group. In 2020, he took over the family office and, according to his LinkedIn profile, he "focused on blockchain." He founded World Liberty in September with his father and others, seven weeks before the presidential election.

World Liberty has issued a cryptocurrency called USD1 that is pegged to the US dollar, aimed at helping businesses and individuals transfer funds across borders outside the banking system. According to sources who have collaborated with the company, it has been marketing the token to foreign governments eager to improve relations with the United States.

In addition to meeting with UAE officials, Zach Witkoff also met with some senior government officials in Pakistan, and weeks later, these individuals negotiated a ceasefire with the Trump administration regarding India. He informed 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 involved in the agreement with Pakistan, the country has been in negotiations with the United States over a potential rare earth and other mineral deal worth trillions of dollars.

A spokesperson for World Liberty stated that the meeting held by the company in Pakistan is "not related at all" to any agreements that Pakistan may 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 the Moscow cryptocurrency conference attended by the Deputy Minister of Finance of Russia.

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

Binance founder Zhao Changpeng made some introductions for World Liberty's overseas journey. In 2023, Zhao Changpeng and Binance admitted to violating U.S. anti-money laundering laws. Zhao Changpeng has been seeking a pardon from the Trump administration, hoping for his company to return to the U.S. market and to terminate the compliance requirements imposed after reaching a settlement with the Department of Justice. A spokesperson for World Liberty stated that Zhao Changpeng and Zach Witkoff are friends, but Zhao Changpeng is not a mediator.

A Binance spokesperson stated that Zhao Changpeng has been promoting "global innovation" in the cryptocurrency industry, and the company is "proud to help the United States become the global cryptocurrency capital."

World Liberty has not disclosed its token purchasers, but it has raised over $550 million through token sales this year. The disclosed buyers include DWF Labs, a cryptocurrency trading firm based in Abu Dhabi, which purchased $25 million worth of tokens; and Sun Yuchen, a cryptocurrency entrepreneur born in China, who invested $75 million and currently serves as an advisor to the company. On Thursday night, Sun Yuchen attended a cryptocurrency-related dinner as a VIP alongside Trump.

According to informed sources, the World Liberty team has been in talks with other companies in the Gulf region regarding potential symbolic purchases, suggesting that such deals could aid in its expansion plans in the United States. A spokesperson for World Liberty denied the claim that such transactions could assist in 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 a dozen cases against cryptocurrency companies, including one against Sun Yuchen, who is known as the largest external investor in World Liberty.

World Liberty's business is thriving. Thanks to the collaboration with the UAE, USD1 has become the fifth largest stablecoin in global market capitalization just one month after its launch. Binance listed USD1 for trading on Thursday, which may boost the demand for the token.

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

Cryptocurrency Association

Weeks after Trump won the 2024 election, his old friend Steve Witkoff from the New York real estate circle embarked on a trip to the Middle East. According to insiders, shortly after Trump's victory, he appointed Witkoff as a special envoy to the Middle East, expressing to Biden administration officials his desire to begin 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 Sun Yuchen and Zhao Changpeng. Witkoff told attendees that cryptocurrency would develop rapidly under Trump's administration.

Zach Witkoff was not present at the time because his wife was in labor. They named their son Don, after the president. He and his brother Alex have taken over World Liberty.

According to The Wall Street Journal, Steve, a father unfamiliar with cryptocurrency technology, was involved in the trading negotiations between Zhao Changpeng's cryptocurrency exchange Binance and representatives of the Trump family. Both Witkoff and Zhao Changpeng denied participating in the negotiations.

As Trump's inauguration day approaches, some countries are beginning to explore new ways to establish connections. During Trump's first term, the relationship between Pakistan and the United States was strained, with the U.S. suspending $300 million in military aid to Pakistan in 2018. Trump repeatedly accused the country of not doing enough to combat extremist organizations.

In search of a new beginning, Pakistan hired a U.S. lobbyist in early January this year to help arrange meetings in Washington during Trump's presidency, where the Pakistani Interior Minister called for more American investment.

In late January, Texas financier and friend of Donald Trump, Gentry Beach, led a delegation of investors to meet with Pakistani Prime Minister Shehbaz Sharif and his cabinet, expressing hopes to invest billions of dollars in luxury real estate and Pakistan's mineral sector (rich in rare earth minerals like lithium). Earlier that month, at an event at Mar-a-Lago, Beach boasted that he had gained access to foreign government leaders after Trump's victory. "They treat me like President Trump," he said.

Gentry Beach Jr., the 20-year-old son of Beach, met with Pakistan's Finance Minister Muhammad Aurangzeb (a former JPMorgan executive) in Islamabad this February to discuss opportunities for developing the crypto industry in Pakistan. The Pakistan Ministry of Finance views cryptocurrency as a way to attract cautious foreign investors and revive the struggling economy.

Also attending the conference with Beach Jr. were a sheikh from Dubai, a Russian tech executive, and the co-founder of the crypto project IslamicCoin. Beach stated that his son does not know the other attendees and has never represented himself as having any affiliation with the U.S. government.

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

An informed source revealed that Pakistani officials do not consider Beach to be the right candidate to help Pakistan become a regional cryptocurrency leader. The finance minister has ordered the establishment of a national cryptocurrency committee to oversee the drafting of cryptocurrency regulations, hoping to attract investors through this initiative. He appointed Pakistani tech entrepreneur Bilal bin Saqib as the head, who attended the Binance yacht party in Abu Dhabi last December and participated in the UAE cryptocurrency conference attended by Steve Witkoff.

Contact in Pakistan

Pakistan has reason to expect an improvement in relations with the Trump administration. In late February, the U.S. government will exempt $397 million in security assistance to Pakistan from the foreign aid freeze list. Trump expressed gratitude to Pakistan for assisting in the capture of a terrorist during his State of the Union address, which pleased Pakistani officials.

Lobbying records show that in April, Pakistan signed an agreement to pay $200,000 per month to Donald Trump's former bodyguard Keith Schiller and former Trump Organization chief lawyer George Sorial, hiring the two as consultants to help the country establish a "long-term economic partnership" with the United States, particularly in the areas of rare earths and critical minerals.

Almost at the same time, Binance's Zhao Changpeng went to Pakistan and was appointed as a strategic advisor to the Pakistan Crypto Committee.

About a week later, World Liberty appointed Pakistani tech entrepreneur Bilal bin Saqib as an advisor, stating that he has experience working with the government.

Now, Pakistan has established contact with Trump.

On April 26, a private jet carrying the leadership of World Liberty 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 Pakistani Ministry of Finance, Witkoff signed a memorandum of understanding, which the Ministry stated would enable World Liberty to help Pakistan become a global leader in cryptocurrency and use its stablecoin USD1 for remittances and trade.

Later that day, the delegation flew to Lahore, escorted by a police convoy to a century-old castle for an evening celebration. In their honor, fireworks were set off, and Coldplay's "Fix You" echoed through the night sky. In a "fireside chat" recording at the Shalimar Gardens in Lahore, 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 the development of digital assets is the policy of the Trump administration, calling it a "new area of diplomatic work" for the U.S. mission in Pakistan. The Pakistani Ministry of Finance did not comment, and the Pakistani Embassy in the U.S. did not respond to requests for comment.

Lobbying records show that the Finance Minister was also trying to arrange a meeting with the Trump administration during his meeting with World Liberty. A U.S. lobbying firm hired by Pakistan in April for $25,000 per month contacted a Treasury official in early May to discuss facilitating a call with the minister.

Robert Seiden, a lobbyist from Pakistan, stated that negotiations regarding rare earth mineral transactions with the U.S. government are progressing rapidly. He mentioned that under the new government, countries "recognize that as long as they are willing to engage in commercial transactions with the U.S., there is a path forward now."

Trump continues to speak positively about Pakistan, stating last week on Fox News: "They are smart people, making incredible products."

Controversies and Regulatory Attention

Departing from Pakistan, Zach Witkoff traveled to Abu Dhabi to attend a private Binance meeting and meet Zhao Changpeng, then went to Dubai to attend the Token2049 conference, where he announced with Eric Trump that Sheikh Tahnoon's company MGX will make a $2 billion investment in Binance using World Liberty's USD1 stablecoin.

Zhao Changpeng continues to open doors for World Liberty. In May, he traveled to Kyrgyzstan to meet with the president and officially joined the country's national cryptocurrency committee. He and a World Liberty advisor also met with the Malaysian government to discuss "digital financial cooperation" between the two countries in terms of cryptocurrency regulation.

Some Democratic lawmakers are investigating whether World Liberty's interactions with foreign governments and foreign citizens 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 of World Liberty, communications with the Trump administration, and other policy information.

In the letter, Witkoff stated that World Liberty has taken "strict due diligence" to comply with the law, but did not provide the requested records.

This letter is signed by attorney Teresa Goody Guillén of the law firm Baker Hostetler, who has also been lobbying for Binance since February.