Based on reports, Senators Elizabeth Warren and Elissa Slotkin have asked three federal agencies to open probes into what they call a troubling $2 billion crypto transaction linked to US President Donald Trump’s family.
The letter, sent to the State Department, Commerce Department, and the Department of Ethics, names two senior figures — David Sacks and Steve Witkoff — and presses for quick answers about their roles.
Senators Call For Investigation
The senators say Sacks, who advises on AI and crypto, and Witkoff, a special envoy to the Middle East, were involved in a complex deal that connected Abu Dhabi’s MGX, Binance, and a stablecoin called USD1.
Reports indicate the deal was first announced in March and was detailed again in a September New York Times piece. According to the senators, the arrangement was not a simple investment but part of a set of actions that could have opened doors for foreign access to US AI systems.
Details Of The Transaction
At the center is USD1, a token issued by World Liberty Financial, a company tied to the president’s family. Based on reports, MGX moved money in a transaction valued at $2 billion that involved Binance and the USD1 token as part of the settlement.
Lawmakers want to know who negotiated which terms, and whether any official acts or policy pushes were influenced by private gain tied to that token.
National Security Concerns Raised
Warren and Slotkin argue the case raises serious national security questions. They wrote that certain officials appear to have pushed for policy changes that would make advanced US AI technology more accessible to the UAE.
The senators warned that “no place in the US government” should be found for mixing official duties with private business interests. They also said that until answers arrive, Congress should be wary of any rules that could benefit politically connected crypto players.
Lawmakers Push Back On Industry-Authored Bills
Senator Warren has said she supports clearer rules for digital assets but will oppose measures “written by the crypto industry.”
Slotkin echoed that view, urging clarity before moving on market reforms and stressing that lawmakers must be sure crypto money is not shaping national security choices.
The House passed its version of a digital asset bill, the CLARITY Act, which drew 78 Democratic votes. Yet the Senate measure, championed by Senator Cynthia Lummis, has stalled and faces a slow path forward.
Featured image from Getty Images, chart from TradingView
