Trump’s Crypto Venture Raises Ethics Concerns
A crypto venture launched by former U.S. President Donald Trump and his Middle East envoy, Steve Witkoff, is facing scrutiny over its partnership with a crypto platform reportedly used by militant groups. The platform, Tron, has raised concerns among ethics specialists regarding potential conflicts of interest and financial ties to entities designated as terrorist organizations.
The Tron Partnership
World Liberty Financial Inc, founded by the Witkoff family just months before the U.S. election, with Trump as a financial beneficiary, partnered with the Tron crypto platform, prompting concerns about ethics and conflicts of interest from experts in U.S. government ethics. The Tron network, known for its speed and low fees, has become a preferred platform for crypto transfers associated with groups designated as terrorist organizations by Israel, the United States, and other countries, according to Reuters reports from 2023. Tron has announced a $30 million investment in World Liberty, and Tron’s founder, Justin Sun, is joining the Trump-Witkoff venture as an advisor.
Israeli authorities and financial crime experts have repeatedly linked Tron to militant activities. Since 2021, the Israeli security services have frozen numerous Tron wallets, alleging their connection to Hamas, Hezbollah, and other terrorist groups. Although Reuters could not independently verify Tron’s use by these groups, the reported association raises significant concerns. Tron has stated it has taken measures to address illicit activities on its network, but the allegations persist.
Ethics and Potential Conflicts
Critics, including ethics professors, have raised concerns about the investment in World Liberty, Trump’s potential financial benefit, and Tron’s alleged links to militant groups. Kathleen Clark, a professor at Washington University in St. Louis specializing in government ethics, stated, “There are red flags all over this.” She questioned whether the relationship with Sun would pose a conflict of interest for Trump.
Trump’s financial ties to the company are under scrutiny. He’s listed as the “chief crypto advocate” on World Liberty’s website and is entitled to a portion of the revenue. Ethics experts point out that the use of the platform could be a way to gain favor with Trump.
Witkoff, who co-founded World Liberty, has a financial stake in a company, WC Digital Fi, LLC entitled to some of World Liberty’s revenues. He is a close friend and donor to Trump. The arrangement raises potential conflicts of interest, since it could influence his Middle East recommendations as a special envoy.
Regulatory Concerns
The U.S. Treasury Department has also seized Tron wallets, including one linked to a group that it said raised money for Hamas following the 2023 attack on Israel. Furthermore, the SEC investigation of Tron founder Justin Sun is another source of concern. Sun was charged with fraud accusations in 2023 and is now joining the venture. If foreign governments and sovereign wealth funds invest in World Liberty, this could violate the U.S. Constitution’s “emoluments” clause. Donald Trump’s transition team hasn’t commented on their conflict of interest plans.
As Trump’s administration prepares to take office in January, ethical questions surrounding World Liberty and its relationship with Tron are becoming increasingly prominent.
