President-elect Donald Trump’s cryptocurrency venture, World Liberty Financial Inc., co-founded with his Middle East envoy Steve Witkoff, has entered into a partnership with the Tron crypto platform. Tron has been associated with illicit activities, including use by Iran-backed militant groups such as Hamas and Hezbollah. This alliance has raised significant ethical and conflict of interest concerns among U.S. government ethics specialists. Reuters
Tron, founded by Chinese-born entrepreneur Justin Sun, has been identified by financial crime experts as a vehicle for crypto transfers linked to designated terrorist organizations. Israeli authorities have frozen numerous Tron wallets since July 2021, citing their use by groups like Hamas and Hezbollah. In March, the U.S. Treasury sanctioned a Lebanon-based money changer who provided Hezbollah officials with crypto accounts, including a Tron wallet, to receive funds from Iran.
Tron announced a $30 million investment in World Liberty, with Sun joining the venture as an advisor. This partnership has intensified scrutiny due to Sun’s ongoing legal issues; in 2023, the U.S. Securities and Exchange Commission charged him with fraud, accusing him of artificially inflating trading volume and concealing payments to celebrities to promote his companies. Sun has contested these charges, stating they “lack merit.”
Ethics experts express concerns that Trump’s financial involvement in World Liberty could lead to conflicts of interest, especially if his administration implements regulatory changes benefiting the crypto industry. Additionally, Witkoff’s dual role as a Middle East envoy and co-founder of the venture presents potential conflicts, given his financial stake in the company. These affiliations might result in violations of the U.S. Constitution’s emoluments clause and raise questions about the appropriateness of a business figure in a diplomatic role.
The partnership between World Liberty Financial and Tron underscores the complex interplay between emerging financial technologies and geopolitical considerations, highlighting the necessity for stringent ethical standards and regulatory oversight.
