World Liberty Financial, a cryptocurrency firm with ties to the Trump family, has recently garnered international attention following its agreement to promote blockchain technology in Pakistan. This development comes shortly after a tragic terrorist attack in Pahalgam, which has heightened tensions between Pakistan and India.
Trump-Connected Crypto Firm Enters Pakistan
The company, which is predominantly owned by a Trump family entity with a 60% stake, formalized a letter of intent with the Pakistan Crypto Council during a recent official visit to Islamabad. The primary objective of this agreement is to enhance the use of blockchain, encourage stablecoin integration, and advance decentralized finance (DeFi) initiatives within Pakistan. Executives from World Liberty Financial, including Zachary Folkman, Chase Herro, and Zachary Witkoff, engaged with prominent Pakistani officials, such as Prime Minister Shehbaz Sharif and Army Chief General Asim Munir, as reported by Dawn newspaper. Notably, the meeting also included Finance Minister Muhammad Aurangzeb and the heads of the Securities and Exchange Commission and the State Bank.
Concerns Arise Over Timing of the Agreement
The timing of this deal has raised eyebrows, particularly as it was announced just five days following a terrorist attack in Pahalgam that resulted in the deaths of 26 individuals. India has alleged that two of the attackers were from Pakistan, a claim that Pakistan has refuted. This timing has prompted concerns in India regarding data security and national safety. An Indian policy advisor expressed fears that the establishment of offshore crypto exchanges in Pakistan could lure Indian traders seeking to evade taxes, stating, “The larger worry is Indians’ financial data falling into Pakistani hands.”
The Trump Family’s Influence in the Firm
World Liberty Financial is primarily controlled by the Trump family, with Donald Trump designated as the firm’s “Chief Crypto Advocate.” His sons, Eric and Donald Jr., hold titles as “Web3 Ambassadors,” while Barron Trump is identified as the “DeFi Visionary.” In October 2024, the firm successfully raised $300 million through the sale of its WLFI tokens and has plans to introduce a stablecoin named USD1, which will be backed by U.S. Treasury assets. According to The New York Times, the firm has approached various crypto startups for currency swap agreements, offering its tokens in exchange for smaller amounts of the startups’ currencies, often under the radar and with steep fees.
Ethical Questions Emerge from Business Ties
The New York Times highlighted that the Trump family’s significant involvement in the firm creates a murky distinction between commercial interests and political considerations. The report cited instances where the Trump-affiliated platform appeared to benefit from regulatory decisions made in Washington. Notably, Chinese crypto investor Justin Sun, who invested $75 million into WLFI, had his legal proceedings delayed by the SEC. Other notable investors, such as Arthur Hayes of Ethena and Binance founder Changpeng Zhao, have also been embroiled in legal controversies. Additionally, the firm received a $25 million investment from Dubai’s DWF Labs to bolster its stablecoin. A New York-based crypto firm that invested in World Liberty subsequently contributed to Trump’s inauguration and sponsored a crypto event linked to him.
Pakistan Looks to Expand Its Crypto Landscape
The Pakistan Crypto Council, with backing from both Trump and Binance’s Zhao, aims to position Pakistan as the leading crypto hub in South Asia. In 2024, Pakistan ranked 9th globally for crypto adoption, boasting approximately 25 million users and $300 billion in annual transactions. CEO Bilal Bin Saqib has openly criticized India’s 30% tax on crypto trading, indicating that Pakistan will adopt a more liberal stance. While this partnership holds potential for advancing Pakistan’s crypto aspirations, the close ties between Trump family interests and foreign policy have drawn scrutiny from both Washington and New Delhi.
