The Trump family's "Chip for Crypto Assets" scandal exposed, Democrats demand thorough investigation into $2 billion UAE transaction.

A political storm involving national security and high-level corruption is brewing in Washington. A recent investigation by The New York Times reveals that senior officials in the Trump administration may have serious conflicts of interest in two major deals with the UAE, approving the export of sensitive artificial intelligence chips while accepting a massive investment from the UAE in the family's encryption business. Democratic senators in the U.S. Senate have formally requested an investigation, accusing this "blatant conflict of interest" of jeopardizing national security.

####Double Transactions: Suspicious Timeline of Chip Exports and Encryption Investments

According to a [deep investigation] by The New York Times ( https://www.nytimes.com/2025/09/24/us/politics/trump-witkoff-sacks-saudi-chips-crypto.html ), there are disturbing connections between the Trump administration and two transactions with the UAE. In May of this year, the UAE investment firm MGX announced a $2 billion investment in World Liberty Financial (WLF). Notably, WLF was co-founded by the Trump family and their close advisor Steve Witkoff's family, with President Trump and his three sons listed as co-founders of the company.

Just two weeks later, the Trump administration approved the export of "hundreds of thousands of the world's most advanced and scarce computer chips" to the UAE—these chips are seen as a key strategic resource in the artificial intelligence race. Even more concerning is that this decision was made amid concerns within the White House that the UAE's close relationship with China could jeopardize national security.

"This kind of timing coincidence is truly hard to ignore," said a national security expert who wished to remain anonymous. "In the context of geopolitical tensions, the transfer of such sensitive technology to the UAE is questionable in itself, and when decision-makers simultaneously gain commercial benefits from the UAE, this suspicion becomes even more serious."

####Key Figures: The Suspicious Roles of Vitekhov and Sachs

The New York Times investigation particularly focuses on the roles of two senior officials in the Trump administration: Steve Witkoff and David Sacks.

Witkoff served as a government employee in the first half of this year, and later transitioned to the role of Special Envoy to the Middle East at the White House, with a broad scope of responsibilities. Notably, Witkoff has a long-standing relationship with the Trump family, and his son, Zach Witkoff, is the CEO of WLF. According to financial disclosure reports, the Witkoff family holds tokens valued at nearly $800 million in the company, which raises potential violations of federal criminal conflict of interest laws regarding their participation in relevant government decision-making.

At the same time, David Sachs, serving as the White House's artificial intelligence and cryptocurrency "tsar," played an important role in the chip export negotiations. Sachs is a special government employee, a position that allows him to simultaneously serve as a venture capitalist. White House insiders have questioned whether it is appropriate for a government employee still engaged in venture capital work to participate in transactions that could benefit his own industry.

"This dual identity itself presents a potential conflict of interest," said government ethics expert Jennifer Moore, "and the risks of such conflicts are exacerbated when it involves national security and billions of dollars in transactions."

####Democratic Party members demand a thorough investigation: "unrestrained conflicts of interest"

U.S. Senate Democrats Elizabeth Warren and Elissa Slotkin have co-signed a letter to the Inspectors General of the Department of Commerce and the State Department, requesting a thorough investigation into these transactions.

"The patterns of these transactions are deeply troubling, indicating that Mr. Vitkov and Mr. Sachs were able to influence government decisions for personal gain, even though doing so poses serious national security risks," the two senators stated in their letter. "Such blatant conflicts of interest should not exist within the U.S. government."

Maryland Democratic Senator Chris Van Hollen also stated that he would use his authority to question the details of the relevant transactions. Democrats are simultaneously investigating whether Sachs violated special government employee work restrictions and are requesting the Securities and Exchange Commission to provide information related to cryptocurrency entrepreneur Sun Yuchen, who collaborated with the Trump family.

####The White House Responds: Denies Transaction Connection

In response to these allegations, the White House spokesperson denied the claims of a connection between the two transactions and stated that Witkoff is working with ethics officials to ensure compliance, while Sachs has received an ethics exemption allowing him to participate in chip negotiations.

Former President Trump's son Eric Trump defended the family during an interview with CNBC last week: "My father is the first person who hasn't made money from the presidency," he said. "We have always been serial entrepreneurs; we have always had companies. The emergence of encryption was because we were deprived of bank accounts by everyone and needed to find a new way."

However, three ethics lawyers interviewed by The New York Times pointed out that Wittekov's role is particularly concerning. As Trump's special envoy to the Middle East, he played a key role in the deal with the UAE, while his family company received substantial investments from the UAE, which poses a high risk of conflict of interest.

####The Political Background of Cryptocurrency Legislation

This controversy arises at a critical moment when Congress is drafting the cryptocurrency market structure bill. Currently, the House of Representatives and the Senate each hold multiple versions of the bill, which ultimately need to be merged into one version. Senate Banking Committee Chairman Tim Scott stated that he hopes to complete the bill's review by the end of this month, but due to the looming government shutdown, the review of the bill may be delayed.

As the Democratic leader of the Senate Banking Committee, Warren emphasized the importance of these investigations to the current legislative process in a letter: "This information is also critical as Congress considers the development of legislation regarding the digital asset market structure and seeks to ensure that cryptocurrency corruption does not undermine our national security."

Political analysts point out that this controversy could have far-reaching implications for cryptocurrency legislation. "If the investigation confirms serious conflicts of interest, this could drive lawmakers to include stricter anti-corruption provisions in the bill," political consultant Robert Chen stated.

####Investigation Prospects and Political Challenges

Despite strong calls from Democratic lawmakers for an investigation, the prospects for a formal review remain unclear in the current political climate. Democrats have questioned Trump's business interests multiple times in the past, but with limited results.

What is even more concerning is that Trump fired the inspectors general of the State Department and the Department of Commerce this January, which could further hinder the progress of investigations. "The independence of the inspectors general's offices is crucial for ensuring government accountability," said government transparency expert Michael Zhang. "If these agencies are politicized, the integrity of the investigations will be called into question."

As the next presidential election approaches, this controversy may become part of a broader political debate, focusing on the intersection of government ethics, national security, and encryption regulation. Regardless of the investigation's outcome, this incident has highlighted the importance of the boundaries between government decision-making and private business interests, especially in areas involving national security and emerging technologies.