Senate Democrats Probe Trump Advisor’s Crypto Holdings Over Ethics Concerns

Ethics Probe Into Trump Advisor’s Crypto Portfolio

Senate Democrats have launched a formal inquiry into Steve Witkoff’s cryptocurrency investments, demanding the Trump administration special envoy explain why he maintained substantial crypto holdings while serving as a top Middle East diplomat. According to reports, eight senators led by Adam Schiff (D-CA) sent a letter Wednesday expressing “serious questions about your compliance with federal ethics laws” regarding Witkoff’s failure to divest from Trump-linked cryptocurrency ventures.

Ethics Probe Into Trump Advisor’s Crypto Portfolio
Undisclosed Crypto Assets Raise Red Flags
Middle East Business Connections Under Scrutiny
Growing Congressional Pressure

Undisclosed Crypto Assets Raise Red Flags

Sources indicate Witkoff’s most recent ethics disclosure, dated August 13, shows he retained ownership in World Liberty Financial cryptocurrency—a venture he co-founded with President Trump in 2024—along with stakes in three other crypto-related entities. The report states these include WC Digital Fi LLC, described in company documentation as “an affiliate of Steve Witkoff and certain of his family members,” plus WC Digital SC LLC and SC Financial Technologies LLC.

Analysts suggest the situation is particularly concerning because World Liberty Financial had previously claimed in May that Witkoff was “in the process of fully divesting” from the project. Despite reportedly divesting a $120 million stake in his real estate company, the special envoy apparently maintained his cryptocurrency positions throughout his diplomatic assignment.

Middle East Business Connections Under Scrutiny

The senators’ letter highlights potential conflicts of interest between Witkoff’s diplomatic role and World Liberty Financial’s business dealings with the United Arab Emirates. According to the analysis, these concerns intensified following a New York Times investigation that revealed overlapping timelines between U.S.-UAE government agreements and Witkoff’s private business arrangements.

Reportedly, two significant transactions occurred within weeks of each other: the U.S. signed an agreement with the UAE to construct the largest AI campus outside America, while World Liberty Financial simultaneously announced a $2 billion investment from Emirati state investment company MGX into cryptocurrency exchange Binance. Sources indicate this investment was processed using World Liberty Financial’s stablecoin, USD1, potentially generating tens of millions in interest for the company.

Growing Congressional Pressure

The current letter represents expanded congressional scrutiny, with signatures from senators beyond Schiff including Ron Wyden (D-OR), Richard Durbin (D-IL), and Cory Booker (D-NJ). This follows earlier requests from two senators asking inspectors general to investigate potential ethics violations after the New York Times report.

Senate Democrats contend that Witkoff’s ongoing crypto business interests create unacceptable conflicts, particularly given his diplomatic responsibilities in regions where his companies maintain financial relationships. The lawmakers wrote that the situation calls into question his “ability to serve the American people over your own financial interests.”

Neither World Liberty Financial nor White House spokespeople have reportedly responded to requests for comment regarding the allegations. The developing situation highlights increasing government scrutiny of cryptocurrency holdings among high-ranking officials and the ethical challenges posed by digital asset investments.

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