World Liberty Financial, a cryptocurrency firm based in the United States and linked to the Trump family, has garnered international attention by entering into an agreement 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.
### Trump-Linked Crypto Firm Enters Pakistan Market
The firm, of which 60% is owned by a Trump family entity, has formalized a letter of intent with the Pakistan Crypto Council during a recent trip to Islamabad. This agreement aims to promote the use of blockchain technology, the adoption of stablecoins, and the growth of decentralized finance (DeFi) within the nation. Key executives from World Liberty Financial, including Zachary Folkman, Chase Herro, and Zachary Witkoff, engaged with prominent Pakistani officials, such as Prime Minister Shehbaz Sharif and Army Chief General Asim Munir. The meeting was also attended by Finance Minister Muhammad Aurangzeb and the chairman of the Securities and Exchange Commission, as well as the governor of the State Bank.
### Concerns Arise Over Timing of the Agreement
The timing of the agreement is particularly noteworthy as it was established just five days after a terrorist attack in Pahalgam that resulted in the loss of 26 lives. India has alleged that two of the attackers originated from Pakistan, a claim that Pakistan refutes. This situation has sparked concerns in India regarding data security and national safety. A policy advisor from India expressed apprehensions that if offshore cryptocurrency exchanges were established in Pakistan, it could lure Indian traders seeking to evade taxes. “The primary concern is the potential exposure of Indian financial data to Pakistani entities,” the advisor stated.
### The Trump Family’s Influence in the Firm
World Liberty Financial is predominantly controlled by the Trump family, with Donald Trump identified as the firm’s “Chief Crypto Advocate.” His sons, Eric and Donald Jr., hold titles of “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 has plans to introduce a stablecoin known as USD1, which will be backed by assets from the U.S. Treasury. Reports suggest that the firm sought partnerships with various cryptocurrency startups for currency exchange arrangements, offering its tokens in return for smaller amounts of those startups’ currencies, often with significant fees involved.
### Ethical Concerns Over Increased Connections
A report by The New York Times highlighted that the Trump family’s extensive involvement in the firm raises questions regarding the intersection of business interests and political influence. It noted several instances where the Trump-backed platform appeared to gain advantages from decisions made in Washington. Notably, Chinese crypto investor Justin Sun, who invested $75 million in WLFI, saw legal proceedings against him by the SEC put on hold. Other investors with controversial backgrounds include Arthur Hayes from Ethena and Changpeng Zhao, the founder of Binance, both of whom have faced legal challenges. Additionally, the firm secured a $25 million investment from Dubai’s DWF Labs to bolster its stablecoin initiative. Remarkably, a New York cryptocurrency company that invested in World Liberty subsequently contributed to Trump’s inauguration and sponsored an event related to Trump and cryptocurrency.
### Pakistan’s Aspirations for Cryptocurrency Advancement
The Pakistan Crypto Council, supported by figures like Trump and Binance’s Zhao, is striving to establish Pakistan as a leading crypto hub in South Asia. In 2024, Pakistan ranked 9th in the world for cryptocurrency adoption, boasting approximately 25 million users and $300 billion in annual transactions. Bilal Bin Saqib, the CEO of the council, has publicly criticized India’s 30% cryptocurrency trading tax, indicating that Pakistan intends to adopt a more liberal approach. While this partnership has the potential to advance Pakistan’s crypto objectives, the close ties between the Trump family, business ventures, and foreign policy are drawing critical examination in both Washington and New Delhi.
