Trump’s Pakistan Crypto Deal Triggers US Senate Investigation
The U.S. Senate has opened a formal investigation into a controversial cryptocurrency agreement between World Liberty Financial Inc. (WLFI)—a firm closely tied to President Donald Trump—and Pakistan’s newly formed Pakistan Crypto Council (PCC). The deal, signed on April 26, 2025, has raised questions over timing, legality, and ethical transparency, particularly as it coincided with Trump’s claim of mediating a ceasefire between India and Pakistan. Senator Richard Blumenthal, who chairs the Senate’s Permanent Subcommittee on Investigations, is leading the inquiry. The investigation aims to determine whether the deal breached federal laws, including the U.S. Constitution’s foreign emoluments clause, which bars federal officials from accepting payments from foreign states without Congressional consent.
WLFI and the Strategic Bitcoin Reserve in Pakistan
WLFI’s agreement with the PCC outlines the establishment of a Strategic Bitcoin Reserve within Pakistan to “modernize the country’s financial future.” However, the partnership is shrouded in controversy. The PCC was created just one month prior to the deal, and the State Bank of Pakistan has reaffirmed that cryptocurrencies remain banned in the country. Despite the legal barriers, WLFI proceeded with signing the pact. The firm, which describes Trump as its “Chief Crypto Advocate,” is run by his sons Donald Jr. and Eric Trump, along with his teenage grandson Barron. The nature of the agreement has raised serious red flags about the influence of Trump’s business interests on diplomatic relations.
Legal and Ethical Questions Over Trump Family Involvement
Senator Blumenthal has requested all correspondence between WLFI and Pakistani Prime Minister Shehbaz Sharif, along with internal documents detailing the company’s financial structure. The Senate is specifically examining whether the Trump family is leveraging international ties for financial gain, using Trump’s political legacy to attract foreign partners. WLFI’s legal team, in response, has criticized the Senate’s actions as “anti-innovation,” stating, “If America doesn’t lead the crypto future, China and Russia will.” However, this defense has done little to deter further scrutiny from lawmakers who view the deal as a potential national security concern.
Broader Scrutiny of Foreign Crypto Ties
This isn’t the only deal under the microscope. Senators Jeff Merkley and Elizabeth Warren have called for an expanded investigation into a $2 billion investment by the UAE’s MGX Fund into Binance Holdings, which was allegedly routed through WLFI’s USD1 stablecoin platform. Lawmakers argue that such arrangements could give foreign actors disproportionate influence over U.S. financial and regulatory systems. With Trump gearing up for a 2026 presidential run, the investigation could have broader political and legal ramifications as the Senate attempts to delineate the boundaries between private crypto ventures and public accountability.
