World Liberty Financial, a cryptocurrency firm with ties to the Trump family, has garnered international attention after finalizing an agreement to advance blockchain technology in Pakistan. This development follows a tragic terrorist incident in Pahalgam that heightened tensions between Pakistan and India.
Trump-Linked Crypto Firm Enters Pakistan
The firm, which is predominantly owned by an entity associated with the Trump family, recently signed a letter of intent with the Pakistan Crypto Council during its officials’ visit to Islamabad. The objective of this partnership is to enhance the utilization of blockchain, facilitate the adoption of stablecoins, and promote decentralized finance (DeFi) throughout the nation. Executives from World Liberty Financial, including Zachary Folkman, Chase Herro, and Zachary Witkoff, engaged with prominent Pakistani figures such as Prime Minister Shehbaz Sharif and Army Chief General Asim Munir, as reported by Dawn newspaper. The meeting also included Finance Minister Muhammad Aurangzeb, the chairman of the Securities and Exchange Commission, and the governor of the State Bank.
Concerns Arise Surrounding the Agreement
The timing of this agreement, which occurred just five days after a terrorist attack in Pahalgam that resulted in 26 fatalities, has raised significant concerns in India. Indian authorities allege that two of the attackers hail from Pakistan, a claim that Pakistan disputes. This has led to apprehensions regarding data security and national safety in India. An Indian policy advisor cautioned that establishing offshore crypto exchanges in Pakistan might lure Indian traders seeking to evade taxes, raising fears about the potential for financial data from Indian citizens to fall into Pakistani hands.
Trump Family’s Involvement with the Firm
World Liberty Financial is predominantly controlled by the Trump family, with Donald Trump serving as the “Chief Crypto Advocate.” His sons, Eric and Donald Jr., hold titles as “Web3 Ambassadors,” while Barron Trump is designated as the “DeFi Visionary.” The company successfully raised $300 million in October 2024 through the sale of its WLFI tokens and is in the process of launching a stablecoin known as USD1, which will be backed by assets from the US Treasury. According to The New York Times, the firm has engaged with various crypto startups for currency swap agreements, offering its tokens in exchange for smaller amounts of their cryptocurrencies, often under the radar and accompanied by significant fees.
Ethical Concerns Surrounding Increased Ties
A report from The New York Times highlighted that the Trump family’s extensive involvement with World Liberty Financial raises ethical questions regarding the intersection of business and politics. It pointed out instances where the Trump-affiliated platform appeared to gain advantages from decisions made at the federal level. Notable investors such as Chinese crypto figure Justin Sun, who invested $75 million in WLFI, had their legal proceedings paused by the SEC. The firm has also attracted investments from controversial figures like Ethena’s Arthur Hayes and Binance founder Changpeng Zhao, both of whom have encountered legal challenges. Additionally, World Liberty received a $25 million investment from Dubai’s DWF Labs to bolster its stablecoin. A New York crypto firm that invested in World Liberty subsequently contributed to Trump’s inauguration and sponsored a crypto event associated with him.
Pakistan’s Ambitions for Crypto Advancement
The Pakistan Crypto Council, with backing from Trump and Binance’s Zhao, aspires to establish Pakistan as the leading crypto center in South Asia. In 2024, Pakistan ranked ninth globally in cryptocurrency adoption, boasting approximately 25 million users and $300 billion in annual transactions. Council CEO Bilal Bin Saqib has openly criticized India’s 30% tax on crypto trading, indicating that Pakistan intends to adopt a more liberal stance in this domain. While this collaboration could significantly benefit Pakistan’s crypto aspirations, the close ties between the Trump family’s business interests and foreign policy are under scrutiny in both Washington and New Delhi.
