Trump-Linked Crypto Firm Makes Waves in Pakistan
World Liberty Financial, a cryptocurrency firm associated with the Trump family, has garnered international attention by formalizing a partnership to enhance blockchain technology in Pakistan. This development comes shortly after a tragic terrorist incident in Pahalgam, which has heightened tensions between India and Pakistan.
New Partnership with Pakistan Crypto Council
The firm, which is predominantly owned by a Trump family entity, recently executed a letter of intent with the Pakistan Crypto Council during a trip to Islamabad. The objective of this collaboration is to promote blockchain technology, increase the use of stablecoins, and foster decentralized finance (DeFi) throughout the nation. Key executives from World Liberty Financial, such as Zachary Folkman, Chase Herro, and Zachary Witkoff, engaged with prominent Pakistani figures, including Prime Minister Shehbaz Sharif and army chief General Asim Munir, as reported by Dawn newspaper. The meeting was also attended by Finance Minister Muhammad Aurangzeb, the head of the Securities and Exchange Commission, and the governor of the State Bank.
Concerns Arise Over Timing of the Agreement
The announcement of the agreement occurred just five days following a terrorist attack in Pahalgam that resulted in 26 fatalities. India has asserted that two of the attackers were from Pakistan, a claim that has been denied by the Pakistani government. The coincidence of the timing has raised alarms in India, particularly regarding issues of data security and national safety. An Indian policy adviser expressed concerns that if offshore cryptocurrency exchanges were established in Pakistan, they could potentially lure Indian traders seeking to evade taxes. “The overarching concern is that financial data from Indians could end up in Pakistani hands,” the advisor stated.
Trump Family’s Influence on the Firm
World Liberty Financial is primarily governed by the Trump family, with Donald Trump serving as the “Chief Crypto Advocate.” His sons, Eric and Donald Jr., hold the titles of “Web3 Ambassadors,” while Barron Trump is designated as the “DeFi Visionary.” In October 2024, the company raised $300 million through the sale of its WLFI tokens and is preparing to launch a stablecoin named USD1, which will be backed by U.S. Treasury assets. According to The New York Times, the firm has approached various cryptocurrency startups for currency swap agreements, proposing to exchange its tokens for smaller quantities of their currencies. These transactions have typically remained confidential and often involve significant fees.
Ethical Concerns Surrounding Business Relations
The New York Times report raises ethical questions about the Trump family’s significant role in the firm, suggesting it blurs the lines between commercial activities and political influence. Several instances were highlighted where the Trump-affiliated platform appeared to gain advantages from governmental decisions. Notably, Chinese crypto investor Justin Sun, who invested $75 million in WLFI, had his legal proceedings with the SEC put on hold. Other notable investors, such as Arthur Hayes of Ethena and Binance founder Changpeng Zhao, have also been embroiled in legal controversies. Additionally, the firm secured a $25 million infusion from Dubai’s DWF Labs to bolster its stablecoin initiatives. Furthermore, a New York cryptocurrency firm that invested in World Liberty subsequently contributed to Trump’s inauguration and sponsored an event linked to Trump’s crypto ventures.
Pakistan’s Aspirations for Cryptocurrency Advancement
The Pakistan Crypto Council, with backing from Trump and Binance’s Zhao, aims to position Pakistan as a leading cryptocurrency hub in South Asia. In 2024, the country ranked ninth globally in terms of cryptocurrency adoption, boasting approximately 25 million users and annual transactions totaling $300 billion. CEO of the Council, Bilal Bin Saqib, recently criticized India’s 30% tax on cryptocurrency trading, stating that Pakistan would adopt a more relaxed regulatory stance. While this partnership could significantly advance Pakistan’s cryptocurrency objectives, the close ties between the Trump family, business interests, and foreign policy are attracting scrutiny from both Washington and New Delhi.
