World Liberty Financial, a cryptocurrency company with ties to the Trump family, has garnered international attention following its recent agreement to enhance blockchain technology in Pakistan—this development comes just days after a tragic terrorist incident in Pahalgam heightened tensions between the two countries.
Trump-Associated Crypto Firm Enters Pakistan
The firm, which is predominantly owned by an entity linked to the Trump family, formalized a letter of intent with the Pakistan Crypto Council during a recent trip to Islamabad. This partnership aims to advance the use of blockchain technology, promote stablecoin adoption, and expand decentralized finance (DeFi) within Pakistan. Key executives from World Liberty Financial, including Zachary Folkman, Chase Herro, and Zachary Witkoff, engaged with prominent figures in Pakistan, such as Prime Minister Shehbaz Sharif and army chief General Asim Munir. The meeting also included Finance Minister Muhammad Aurangzeb, the chairman of the Securities and Exchange Commission, and the governor of the State Bank.
Concerns Surrounding the Agreement
The signing of the agreement took place merely five days after a terrorist attack in Pahalgam claimed the lives of 26 individuals. India has alleged that two of the attackers were from Pakistan, a claim that the Pakistani government has denied. This timing has raised significant concerns in India, particularly regarding issues of data security and national safety. An Indian policy advisor expressed worries that establishing offshore cryptocurrency exchanges in Pakistan could entice Indian traders looking to evade taxes. The advisor emphasized, “The larger concern is the potential risk of Indian financial data falling into the hands of Pakistan.”
Trump Family’s Influence in the Firm
World Liberty Financial is significantly influenced by the Trump family, with Donald Trump serving as the company’s “Chief Crypto Advocate.” His sons, Eric and Donald Jr., hold titles as “Web3 Ambassadors,” while Barron Trump is designated as the “DeFi Visionary.” The firm successfully raised $300 million in October 2024 through the sale of its WLFI tokens and plans to introduce a stablecoin called USD1, which will be backed by U.S. Treasury assets. Reports indicate that the company reached out to various crypto startups for currency swap agreements, often offering its tokens for smaller quantities of other cryptocurrencies. These transactions were typically conducted discreetly and accompanied by substantial fees.
Ethical Implications of Increased Ties
A report from The New York Times highlighted that the Trump family’s substantial involvement in World Liberty Financial creates a complex intersection between business interests and political influence. The article noted several instances where decisions made in Washington appeared to benefit the Trump-backed platform. Notably, Chinese crypto investor Justin Sun, who invested $75 million in WLFI, had his legal proceedings paused by the SEC. Other notable investors include Arthur Hayes from Ethena and Changpeng Zhao, founder of Binance, both of whom have faced legal challenges. Furthermore, the firm received a $25 million investment from Dubai’s DWF Labs to bolster its stablecoin initiative. Additionally, a New York-based crypto firm that invested in World Liberty subsequently contributed to Trump’s inauguration and sponsored a crypto event related to him.
Pakistan’s Aspirations for Crypto Development
The Pakistan Crypto Council, backed by Trump and Binance’s Zhao, aims to position Pakistan as a leading cryptocurrency hub in South Asia. In 2024, Pakistan ranked ninth globally in terms of cryptocurrency adoption, boasting approximately 25 million users and annual transactions totaling $300 billion. Bilal Bin Saqib, the CEO of the Council, recently criticized India’s 30% tax on crypto trading, asserting that Pakistan would adopt a more liberal stance on cryptocurrency. While this collaboration may support Pakistan’s ambitions in the crypto space, the close ties between the Trump family, its business interests, and foreign policy are drawing scrutiny from both Washington and New Delhi.
