WSJ: Revealing how the Witkoff father and son built an encryption 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 article compiled by: Luffy, Foresight News

In July last year, Steve Witkoff and his son, cryptocurrency 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 Tahnoon bin Zayed al Nahyan, a member of Abu Dhabi's royal family, and to attend a cryptocurrency conference. Less than five months later, Witkoff's son, Zach Witkoff, co-founder of crypto firm World Liberty Financial, announced at a conference in Dubai that the company had reached an agreement with Tahnoo's ventures, which would buy $2 billion in cryptocurrency issued by World Liberty. The Witkoffs and 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, the elder Witkoff met again with Tahnoon, this time to unveil a deal that the UAE had long sought: access to millions of advanced U.S.-made computer chips for the oil-rich Gulf monarchy. Steve Witkoff, 68, a longtime close friend of Mr. Trump, has traveled the globe on foreign affairs since serving as special envoy. Meanwhile, 32-year-old son Zach Witkoff and his team of advisors traveled to at least four countries to advance crypto trading aimed at making World Liberty Financial an industry leader.

The father-son's parallel transaction in the UAE is a stark illustration of how World Liberty Financial's business efforts are intertwined with government business. In his pitch call with crypto firms, Zach Witkoff compared Trump to the "godfather" and said World Liberty would take advantage of America's increasingly friendly crypto regulatory changes, according to people familiar with the matter. His posts on Platform X often refer to the work his father did for the White House. The interweaving of government negotiations with private business deals is rewriting the rules of diplomacy for some countries trying to forge ties with the new Trump administration. Trump-related parties, including the Witkoff father and son, have sought business opportunities in places like the Persian Gulf since Teplan's inauguration, which has 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, in addition to hiring American lobbyists and sending delegations to Washington to improve relations with the Trump White House, have also met with the relatives and friends of U.S. officials. For example, a senior finance minister from Pakistan met with the sister-in-law of U.S. Defense Secretary Pete Hegseth, as well as the 19-year-old son of Donald Trump Jr. (the eldest son of President Trump), to discuss issues related to digital assets.

On May 1, Zach Witkoff (center), co-founder of World Liberty Financial, cryptocurrency entrepreneur Justin Sun (left), and Eric Trump (right), son of Donald Trump, 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 and will not discuss company or personal matters while serving in government. She noted that Trump is "immensely proud of the achievements Steve has made." Witkoff does not receive a government salary and is traveling the world on a private jet, and his financial status has not been made public. 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 that the company "does not even have the capacity to discuss official government matters." He stated that "trying to characterize the meeting between World Liberty and Ambassador Witkoff in the same country as some sort of conflict of interest" is incorrect, adding that "there is absolutely no connection between the two." He denied that Zach Witkoff referred to Trump as a godfather and pointed out that Witkoff is Jewish and has no godfather. The Trump Organization, the real estate company of the Trump family, has pledged not to engage in new deals with foreign governments during Trump's presidency. World Liberty has not made such a commitment.

Before venturing into the cryptocurrency space, Zach Witkoff served as a project manager at his father's New York real estate firm, Witkoff Group. In 2020, he took over the family office and, according to his LinkedIn profile, "focused on blockchain." In September, just seven weeks before the presidential election, he, along with his father and others, founded World Liberty. World Liberty issued a cryptocurrency called USD1, which is pegged to the US dollar and aims to help businesses and individuals transfer funds across borders outside the banking system. According to sources who have collaborated with the company, it has marketed the tokens to foreign governments eager to improve their relations with the United States.

In addition to meeting with UAE officials, Zach Witkoff also met with several 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 "tokenize" the buying and selling of Pakistan's rare earth minerals using blockchain technology. Meanwhile, according to a lobbyist involved in the agreement with Pakistan, the country has been negotiating with the United States on a potential rare earth and other minerals deal worth trillions of dollars.

A spokesperson for World Liberty stated that the company's meeting in Pakistan is "in no way related" 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 a cryptocurrency conference in Moscow 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 Sheikh's Instagram account.

The founder of the cryptocurrency exchange platform Binance, CZ, made some introductions for World Liberty's overseas journey. In 2023, CZ and Binance acknowledged violations of the U.S. anti-money laundering laws. CZ has been seeking a pardon from the Trump administration, hoping for his company's return to the U.S. market and wishing to terminate the 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 promoting "global innovation" in the cryptocurrency industry, and the company is "proud to help the U.S. become the global cryptocurrency capital."

World Liberty has not disclosed its token buyers, but has raised over $550 million through token sales this year. Buyers who have disclosed their purchases include DWF Labs, a cryptocurrency trading firm based in Abu Dhabi, 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 VIP alongside Trump.

According to sources, the World Liberty team has been negotiating with other companies in the Gulf region regarding potential symbolic purchases, stating that such transactions could assist in its expansion plans in the United States. A spokesperson for World Liberty denied the company's claim that such transactions could help its expansion plans in the U.S.

Since Trump took office, he has been working to weaken the government's regulation of the cryptocurrency industry. The U.S. Securities and Exchange Commission (SEC) has dropped more than a dozen cases against cryptocurrency companies, including one against Justin Sun, who is known to be the largest external investor in World Liberty. World Liberty's business is thriving. Thanks to its collaboration with the UAE, USD1 has become the fifth largest stablecoin by market capitalization just one month after its launch. Binance listed USD1 for trading on Thursday, which may boost demand for the token.

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

cryptocurrency association

Weeks after Trump won the 2024 presidential 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 start rebuilding connections in the region.

While in Abu Dhabi, Witkoff attended a cryptocurrency conference and socialized privately with other crypto entrepreneurs who would later become key figures at World Liberty, including Justin Sun and CZ. Witkoff told attendees that cryptocurrencies will skyrocket under Trump. Zach Witkoff was not present at the time because his wife was in labor. They named their son Don, the same name as the president. He and his brother Alex have taken over World Liberty.

According to the Wall Street Journal, his father, Steve, who was not yet familiar with crypto, was involved in negotiations between Binance, CZ's crypto trading platform, and representatives of the Trump family at the time. Both Witkoff and CZ have denied any involvement in the negotiations. As Trump's inauguration day approaches, some countries are exploring new ways to connect. During Trump's first term, relations between Pakistan and the United States were strained, and the United States suspended $300 million in military aid to Pakistan in 2018, and Trump repeatedly accused the country of not doing enough to combat militant groups.

In search of a fresh start, Pakistan hired American lobbyists 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 close 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 in luxury real estate and Pakistan's mineral sector, which is rich in rare earth minerals like lithium. Earlier that month, at an event at Mar-a-Lago, Beach boasted that after Trump’s victory, he gained opportunities to engage with foreign government leaders. "They treat me like President Trump," he said.

Beach's 20-year-old son, Gentry Beach Jr., met with Pakistani Finance Minister Muhammad Aurangzeb (a former JPMorgan executive) in Islamabad in February to discuss opportunities to grow the crypto industry in Pakistan. Pakistan's Ministry of Finance sees cryptocurrencies as a way to attract cautious foreign investors and revive the sluggish economy. Beach Jr. was joined by a sheikh from Dubai, a Russian tech executive, and the co-founder of the crypto project IslamicCoin. Beach alleges that his son did not know anyone else present and never represented himself as having any identity associated 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.

A knowledgeable source revealed that Pakistani officials do not consider Beach to be a suitable 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 in this way. 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 look forward to improving relations with the Trump administration. In late February, the U.S. government exempted $397 million in security assistance to Pakistan from its foreign aid freeze list. In his State of the Union address, Trump thanked Pakistan for its assistance in arresting a terrorist, much to the delight of Pakistani officials. In April, Pakistan signed an agreement to pay $200,000 a month to Trump's former bodyguard, Keith Schiller, and former Trump Organization's chief lawyer, George Sorial, to hire the two as advisers to help the country build a "long-term economic partnership" with the United States, particularly in the areas of rare earths and critical minerals, according to lobbying records.

Around the same time, Binance's CZ traveled to Pakistan and was appointed as a strategic advisor to the Pakistan Crypto Council. About a week later, World Liberty appointed Pakistani tech entrepreneur Bilal bin Saqib as an advisor, citing his experience in collaborating with the government.

Now, Pakistan has established contact with Trump. On April 26, a private plane carrying the leadership of World Liberty landed in Islamabad. Zach Witkoff and his co-founders Zak Folkman and Chase Herro were welcomed by Saqib on the tarmac. At a subsequent ceremony with the Pakistani Ministry of Finance, Witkoff signed a memorandum of understanding, which the Ministry of Finance stated would enable World Liberty to assist Pakistan in becoming a global leader in cryptocurrency, using 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 in the night sky. In a recording of a "fireside chat" at the Shalimar Gardens in Lahore, Witkoff said, "You are sitting on trillions of dollars in rare earth minerals." A spokesperson for the U.S. Embassy in Pakistan stated that supporting the development of digital assets is a policy of the Trump administration, describing it as a "new area of diplomatic work" for the U.S. mission in Pakistan. The Pakistan 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 when the Treasury Secretary met with World Liberty, he was also trying to arrange a meeting with the Trump administration. A U.S. lobbying firm hired by Pakistan in April for $25,000 a month approached a Treasury official in early May to facilitate a call with the minister. Pakistani lobbyist Robert Seiden said negotiations for a rare earth minerals deal with the U.S. government are progressing rapidly. Under the new administration, he said, countries "recognize that there is a way forward now as long as they are willing to make a commercial deal with the United States." Trump continued to speak positively about Pakistan, saying on Fox News last week, "They're smart people who make incredible products."

Controversies and Regulatory Concerns

Zach Witkoff traveled from Pakistan to Abu Dhabi to attend a private Binance meeting and meet with CZ. He then went to Dubai for the Token2049 conference, where he announced with Eric Trump that Sheikh Tahnoon's company MGX would invest $2 billion in Binance, to be paid in World Liberty's USD1 stablecoin. CZ continues to keep the doors open for World Liberty. In May, he traveled to Kyrgyzstan to meet with the president and officially joined the country's national crypto committee. He and a World Liberty advisor also met with the Malaysian government to discuss "digital financial cooperation" between the two countries in crypto regulation.

Some Democratic lawmakers are investigating whether World Liberty's interactions with foreign governments and foreign citizens violate the law.

Last week, Zach Witkoff posted a letter on Platform X in response to a question from Senator Richard Blumenthal, Democrat of Connecticut. Blumenthal asked for details of World Liberty's finances, communications with the Trump administration, and other policy information. Witkoff's letter stated that World Liberty had conducted "rigorous due diligence" to comply with the law, but did not provide the required records. The letter was signed by Teresa Goody Guillén, a lawyer at Baker Hostler Law Firm, who has also been lobbying for Binance since February.

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