Israeli and US authorities say Tron, the largest backer of the Trump-Witkoff crypto project, facilitated transfers linked to Hamas and Hezbollah.
At the Bitcoin MENA conference on Tuesday in Abu Dhabi, Eric Trump, executive vice president of the Trump Organization and son of US President-elect Donald Trump, praised the UAE for its leadership in blockchain innovation and confirmed that World Liberty Financial Inc.—a crypto firm founded two months before the November US elections with the former and future president as its financial beneficiary—has secured a $30 million investment from crypto platform Tron. While Tron supporters say its technology is cheaper and more flexible than established networks, Israeli and US authorities say it has facilitated transfers linked to groups designated as terrorist organizations, raising questions of ethics and of potential conflicts of interest as the new administration shapes its digital finance policy. .
The conference attracted prominent figures from the blockchain industry, Middle East finance and members of the new US administration. Eric Trump has championed the UAE’s cryptocurrency ambitions, echoing his father’s stated goal of making the United States “the world leader in cryptocurrencies.” He called blockchain “faster, cheaper and more transparent” than conventional financial infrastructure and predicted that the value of bitcoin would reach $1 million. The audience responded with applause, some sporting red “Make Bitcoin Great Again” hats.
UAE crypto vision and regulatory framework
The UAE’s growing role as a leader in digital finance has been fueled by incentives such as zero corporate tax, strategic investments and regulatory clarity. At the heart of these efforts is the Virtual Assets Regulatory Authority (VARA), which oversees compliance with anti-money laundering and anti-terrorism financing standards while ensuring investor protection. Free zones, including Abu Dhabi Global Market and Dubai International Financial Centre, attract blockchain businesses with tailored regulations and financial benefits. This focus on clear and supportive regulatory structures contrasts with what many see as a more fragmented environment in the United States.
Leading a digital asset-friendly environment required some “chutzpah” before it became popular. It was not without risks.
“The UAE is often seen as using its crypto policies to enhance its geopolitical influence, but I see it the other way around: its geopolitical influence is behind the success of its crypto policies,” Sam Blatteis , CEO of The MENA Catalysts and former head of public policy at Google in the Gulf, told The Media Line. “The policy and intentions were driven by diversification of the financial economy as a goal. The result has been geo-economic advantages for countries seeking to cooperate on digital assets and global companies setting up shop in the UAE. But leading a digital asset-friendly environment took courage before it became popular. It was not without risks.
Stablecoins and everyday applications
Beyond traditional cryptocurrencies like bitcoin, the UAE is increasingly exploring stablecoins, which are digital currencies pegged to conventional assets – often the US dollar or UAE dirham – to maintain a stable value. This reduces price volatility and makes them more convenient for everyday trading. In August, Tether, a leading stablecoin issuer, announced plans to launch a dirham-backed stablecoin in partnership with Abu Dhabi-based companies. Eric Trump has hailed stablecoins as a bridge between traditional and digital financial systems, a view echoed by local innovators who see them as an important tool to facilitate cross-border payments and promote financial inclusion.
Cryptocurrencies are already integrated into daily life in the UAE. Bitcoin and other digital currencies can be used for transactions ranging from buying coffee to purchasing real estate. “When I say ‘alternative to cash,’ I mean I view cash as just another asset class,” Mohamad Khaled Mrad, founder of SVN Capital in Dubai, told The Media Line. “Bitcoin, for example, is as liquid as cash: you can make peer-to-peer transfers, move funds between banks and convert them easily.”
Mrad, a seasoned wealth manager, highlighted the shift in perception since 2019, when crypto moved from a speculative investment to a recognized store of value. He nevertheless warned against volatility: “My father once told me about a donkey trader who drove prices up to dizzying levels. …Bitcoin and other cryptos are highly dependent on market belief and sentiment. If that changes, their value could disappear overnight. Advising clients, he suggests limiting exposure to just 1-5% of their portfolios, unless they have substantial expertise in digital assets.
Tron investment, ethics and conflicts of interest
World Liberty’s new partnership with Tron is setting off alarms among some experts. Tron’s founder, Chinese-born entrepreneur Justin Sun, will join the Trump-Witkoff venture as an advisor. Israeli authorities say Hamas and other groups designated as terrorist organizations have used Tron’s high-speed, low-cost network for illicit financing. Israel’s National Counterterrorism Financing Office has frozen numerous Tron wallets since July 2021, linking many to Hamas, Hezbollah and other groups. The US Treasury Department also seized Tron wallets allegedly linked to terrorist financing after the 2023 attack on Israel.
Steve Witkoff, a billionaire real estate developer and close ally of Donald Trump, co-founded World Liberty Financial alongside Trump. He owns an interest in WC Digital Fi, LLC, which is entitled to a portion of World Liberty’s revenue. Witkoff was recently named special envoy to the Middle East by the new Trump administration, a move that drew scrutiny due to his lack of foreign policy experience. Critics say his financial interests in World Liberty could lead to potential conflicts of interest as he advises on Middle East policy.
According to a Reuters report, an anonymous source close to Witkoff’s plans said he would place his assets in a “blind trust.” However, the source confirmed that he would retain ownership of these assets. Ethics experts say that even with a trust, conflicts of interest could arise if its financial stake in World Liberty benefits from its diplomatic role. Additionally, Witkoff’s connection to Trump reinforces concerns about overlap between the company and the administration’s crypto regulatory policies.
The US-UAE Partnership and Israeli Participation
As the United States and the United Arab Emirates deepen cooperation on digital finance, David Sacks, the White House’s new artificial intelligence and cryptocurrency adviser, is expected to play a key role in shaping policy in terms of blockchain. Sacks, which has invested heavily in Israeli startups, could take inspiration from the UAE’s approach to innovation and regulation. The Abraham Accords expanded cooperation between Israel and the Gulf states, creating synergies for fintech and crypto initiatives.
Yoni Assia, CEO of eToro, an Israeli-founded social trading platform that integrates cryptocurrencies, was among the conference’s prominent participants, reflecting how the UAE, Israel and the United States are finding ground understanding in the fintech field. This triangular cooperation strengthens a growing ecosystem in which blockchain companies can thrive, experiment and scale in a favorable environment.
“The UAE’s leadership in blockchain is not just about technology; it’s a question of vision,” Blatteis said. “Their ability to balance innovation and regulation is something other countries, including the United States, can learn from.” »
As the Bitcoin MENA conference concluded, many viewed the UAE’s strategies as an inspiration and a warning. Although the country’s policies encourage crypto adoption, questions about transparency, foreign influence, and conflicts of interest persist. Observers say the new US administration’s handling of ethical concerns surrounding global freedom and Tron’s involvement will serve as an early test of its commitment to ensuring responsible regulation of crypto.
