U.S. Senator Elizabeth Warren (D-Mass.) has launched a formal inquiry into two senior Trump administration officials, alleging a complex “pay-to-play” scheme linking U.S. AI technology exports to a $2 billion investment in the Trump-affiliated crypto venture, World Liberty Financial (WLF).
In a letter sent Tuesday to the State Department and Office of Government Ethics, Warren and Senator Elissa Slotkin (D-Mich.) specifically targeted White House AI and Crypto Czar David Sacks and Special Envoy to the Middle East Steve Witkoff. The probe demands to know if the officials facilitated the transfer of sensitive U.S. AI chips to the United Arab Emirates (UAE) in exchange for Emirati capital flowing into WLF.
“In the history of our country’s foreign policy, one is hard-pressed to find two senior officials with such significant conflicts of interest,” the Senators wrote.
The $2 Billion Discrepancy
The investigation centers on a timeline of two seemingly unrelated events. First, the Trump administration relaxed export controls, allowing the UAE access to advanced American AI hardware. Shortly after, a UAE-backed investment firm poured liquidity into World Liberty Financial, a protocol where Witkoff’s son, Zach Witkoff, serves as CEO.
David Sacks, who oversees both AI and crypto policy for the White House, reportedly manages a venture fund backed by Emirati capital that invests in the infrastructure supporting WLF’s stablecoin, USD1. The token, WLFI, currently trades at $0.13, down 1% in the last 24 hours, with volume failing to break $100 million despite the high-profile scrutiny.
Legislative Collateral Damage
The probe has immediate legislative consequences. Warren explicitly threatened to blockade the digital asset market structure bill, legislation desperately awaited by the industry to clarify SEC vs. CFTC jurisdiction, until the administration provides “full transparency” on the UAE deals.
The threat appears effectively executed. The Senate Banking Committee confirmed Monday that the market structure bill will not see a markup in 2025, pushing any potential regulatory clarity to early 2026. For an industry bleeding capital to clearer jurisdictions like the EU and Singapore, the delay is a critical blow.
