Narrator / Host (2:32)

This secret deal was remarkable. A foreign government official getting deeply involved with an incoming U.S. president's company. And what are the implications?

Rebecca Ballhaus (2:44)

Typically, presidents take pains to avoid, you know, any optics that might look like they're conducting diplomacy in a way that favors their own bottom line. A foreign government official taking a stake in the president's company right before he becomes president is a first and is not something we've seen in modern American politics.

Narrator / Host (3:10)

Since that deal took place, World Liberty Financial has become a major player in the crypto industry and a money making machine for the Trump family. And the UAE finally got something it's wanted from the US for years. A lawyer for the White House said that, quote, the president has no involvement in business deals that would implicate his constitutional responsibilities. And a spokeswoman for the Trump Organization said the idea that politics has enriched the Trump family is, quote, laughable. Over the course of two episodes, we're diving into the secret dealings that put World Liberty Financial on the map while personally enriching the Trump family. Welcome to the Journal, our show about money, business and power. I'm Jessica Mendoza. It's Saturday, April 25th. This is episode two, the deal with the Spy Shake Foreign

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Narrator / Host (4:58)

The United Arab Emirates is a tiny but extremely wealthy nation on the Arabian Peninsula. And for decades, the country has been gearing up for a post oil future. To do that, it has its sights set on becoming a world leader in artificial intelligence. And the person behind that goal is the UAE President's brother, Sheikh Taknun bin Zayed Al Nahyan. Sheikh, by the way, in the UAE is a title for male royals.

Rebecca Ballhaus (5:26)

So Sheikh Tugnun is this really interesting figure. He oversees a more than $1.3 trillion empire that's backed by both his personal fortune and state money. And he owns companies that span from, you know, fish farms to AI to surveillance. And he is sometimes referred to as the spy.

Narrator / Host (5:46)

Sheik Taknun gets that spy sheikh nickname because he's the country's national security advisor. But he's also just pretty mysterious. He doesn't really do interviews, and because of an eye condition, he's almost never seen without a pair of big dark sunglasses on. And he has grand ambitions for the future of the uae.

Rebecca Ballhaus (6:08)

So Sheikh Tanun was given this mission by his brother to lead the country push to become a world leader in AI. And what he needs to be able to do that is to secure access

Narrator / Host (6:19)

to US chips, as in artificial intelligence chips, the ones that power AI's quick processing. There are different kinds of AI chips manufactured around the world, but the ones from US companies are considered to be the best, and those are the ones that Takh Nun wanted. Those chips would help him reach a goal he's been working towards for years, building one of the world's biggest AI data center clusters, a project so big that it would require the energy of two Hoover dams.

Rebecca Ballhaus (6:50)

And he starts doing this under the Biden administration and starts lobbying to, you know, be allotted a certain number of these chips. But he really encounters hurdles because during the Biden administration, US Officials are really skeptical about the UAE and in particular, Tanun's company's ties to China. And so in 2023, one of Tanun's companies that it's cutting its ties to China, that it's siding with the U.S. but the skepticism sort of remains.

Narrator / Host (7:22)

Back then, it wasn't just Democrats who were concerned. Some Republicans were worried too. Here's Representative Mike Gallagher.

Jessica Mendoza (7:29)

Above all, when we look at this space, we need to understand that a world in which the Chinese Communist Party dominates critical technologies, particularly artificial intelligence, is a very dark and dystopian world. And it's one that we don't.

Narrator / Host (7:42)

With all the pushback, Biden decided to allow the UAE access to only a small number of AI chips, far fewer than Takh Nun had been pursuing. But Takh Nun isn't used to being told no. After all, he controls more money than almost anyone else on the planet.

Rebecca Ballhaus (7:59)

When Trump is elected, Taknun sees an opportunity to get the approval for more chips that he had wanted during the Biden administration. And so they really launched this full court press to win over the incoming Trump administration.

Narrator / Host (8:14)

After the US Presidential election, Takh Noon began finding ways to get close to the incoming Trump administration. And an opportunity presented itself in the Trump family's new crypto company, World Liberty Financial. So four days before Trump's inauguration, Takh Noon and some co investors bought half of world Liberty, purchasing 49% of the Trump's company for half a billion dollars.

Rebecca Ballhaus (8:43)

The deal is signed January 16, 2025. Four days before the inauguration. It's signed by Eric Trump.

Narrator / Host (8:52)

Signing on the UAE side were two executives working for Takhoun. Half of the purchase price was paid up front, immediately steering $187 million to Trump family entities.

Rebecca Ballhaus (9:07)

It was not disc. They never announce this partnership.

Narrator / Host (9:12)

This was a massive deal and it was kept a secret.

Rebecca Ballhaus (9:15)

My colleague Sam Kessler called me on a weekend and said that he had reviewed company documents that backed up that the Sheik had struck this deal with World Liberty. And I think my jaw just dropped. It was, you know, that was A big surprise.

Narrator / Host (9:36)

A World Liberty spokesman said that the deal was in the company's best interest and that the President has had no involvement in either this deal or in the company since taking office. The spokesman also said the idea that, quote, a privately held American company should be held to some unique standard, that no other similar company would be held, is both ridiculous and un American. A person familiar with Takhoun's investment said that it was not discussed with President Trump.

Rebecca Ballhaus (10:06)

What's kind of amazing is that at the time of the investment, World Liberty doesn't have any products which, you know, if you're looking at a typical deal, you're going to say that's not a great deal for this investor, Right?

Narrator / Host (10:19)

So what was it that they were purchasing exactly? What did they get in return?

Rebecca Ballhaus (10:23)

I mean, I think that's the question. But certainly if you're talking about trying to avoid optics of what would look like a deal where, you know, it begs the question of what one party is getting, this doesn't necessarily follow what previous presidents might have done.

Narrator / Host (10:40)

And that's not all. After that deal with World Liberty was done, Takh Nun, now a major secret owner in the Trumps company, made another move.

Rebecca Ballhaus (10:50)

Sheikh Tanoon runs several other companies, including the company mgx.

Narrator / Host (10:56)

We told you about MGX in the last episode. It's that company that's backed by the UAE government. And it's also the company that used World Liberty's USD 1 to make a $2 billion investment in the cryptocurrency exchange Binance. You may remember, that transaction was a huge moment for World Liberty. It ultimately allowed World Liberty to pocket $80 million in income annually and it legitimized the company in USD 1. In the eyes of the crypto world, MGX is Takh Noon's company. But when that $2 billion transaction happened, it wasn't public that MGX and World Liberty shared ownership Tahnoon. So World Liberty used it as an endorsement, like, hey, this major Emirati investor is using our stablecoin and you should too.

Rebecca Ballhaus (11:46)

World Liberty presented this MGX Investment using USD1 as an enormous vote of confidence in World Liberty and in its stablecoin. And so the fact that Zach Witkoff took the stage and was saying, we thank MGX for their trust in us,

Jessica Mendoza (12:04)

we thank MGX and Binance for their trust in us.

Rebecca Ballhaus (12:08)

At the time, that he knew that both MGX and World Liberty were, you know, partly owned by the same person was just pretty shocking to me.

Narrator / Host (12:21)

What is the risk of going into business with a foreign government official? In this way, the risk is that

Rebecca Ballhaus (12:27)

then every deal you do with that foreign government or every interaction you have with them is sort of called into question whether this is part of a business deal or whether you're doing this in the best interest of the us.

Narrator / Host (12:46)

Three months after the secret deal, Takh Nhun goes to the White House. That's next.

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Narrator / Host (14:04)

In March of 2025, three months after Takh Nhun had secretly bought a stake in World Liberty Financial, President Trump invited him to the White House.

Rebecca Ballhaus (14:15)

Taknun arrives in Washington with his delegation and Trump hosts this big White House dinner for Taknun and his delegation, and he invites the Vice President and several Cabinet members, including the Secretary of State and the Secretary of the Treasury. We see Taknun in photos that the White House releases sitting across from Trump.

Narrator / Host (14:35)

Takh Noon got the full red carpet treatment. Photos showed them together in the Oval Office sitting side by side, Trump with a huge grin on his face.

Rebecca Ballhaus (14:45)

And what I heard from national security officials and former national security officials that I spoke to was that they were pretty stunned to see this level of access that Tak Nun is getting. Because under previous administrations, what usually happens with a visiting foreign official is that they'll meet their US counterpart. So for Taknun, that would be the national security advisor. And Taknun did at one point meet with Biden, but he didn't get this kind of splashy White House dinner with the President and a half dozen Cabinet members. And so people who kind of know how these things usually worked found that pretty remarkable.

Narrator / Host (15:21)

A big Part of Takh Noon's visit was to get artificial intelligence chips, the same chips that the Biden administration had limited over concerns about the UAE's links to China.

Rebecca Ballhaus (15:32)

He's there in large part to push for a chip deal with the us. He meets with Trump in the Oval Office. He makes this 1.4 trillion doll. He says the UAE will invest in the US over a decade, which, you know, Trump loves those kinds of announcements, loves to later tout those. And he told people at the time that he was really excited about that.

Narrator / Host (15:58)

Then two months later, in May, Trump made a visit. In turn, he went to the UAE himself.

Rebecca Ballhaus (16:05)

Trump travels to Abu Dhabi. It's also kind of a total love fest between Trump and the uae. The UAE organizes these fighter jet escorts for Air Force One.

Narrator / Host (16:17)

There was a parade of soldiers and dancers and people waving US and UAE flags greeting Trump inside the country's beautiful white and gold presidential palace.

Rebecca Ballhaus (16:28)

Trump tells the president of the country, who's Thak Nun's brother, that he's a

Donald Trump (16:33)

magnificent man, a very strong man, a brilliant man, a man of vision, and

Rebecca Ballhaus (16:40)

he brings technhoon up in meetings. He says, you, wonderful brother, has recently been to Washington to the President, and

Donald Trump (16:46)

your wonderful brother came to Washington a few weeks ago.

Rebecca Ballhaus (16:51)

And he looks over this 3D model of a massive AI data center project. And Steve Witkoff and Tuck Noon are kind of looking on nearby. So it's this sort of amazing convergence of many of the players who are all together in Abu Dhabi.

Donald Trump (17:07)

I have absolutely no doubt that the relationship will only get bigger and better. Your. Your relationship.

Narrator / Host (17:14)

And then on the final day of the trip, Trump made a big announcement yesterday.

Donald Trump (17:19)

The two countries also agreed to create a path for UAE to buy some of the world's most advanced AI semiconductors from American companies. A very big contract.

Rebecca Ballhaus (17:30)

He says that the two countries have agreed to a very big contract for the UAE to buy around 500,000 of the US's advanced AI chips per year. I mean, obviously this is what Taknun has been lobbying for. So this is a huge deal.

Donald Trump (17:46)

When he gives you a handshake, when he makes a deal, that's the deal.

Narrator / Host (17:50)

National security concerns were not mentioned. And on his flight home, Trump boasted about his relationship with the uae.

Donald Trump (17:59)

This has been an amazing trip. We've raised trillions of dollars of investment for our country. And we're dealing with really good people that have been abandoned in a way by our country and by the United States.

Narrator / Host (18:14)

Then In January of 2026, Takh nun's secret stake in World Liberty Financial suddenly wasn't a secret anymore because Rebecca and the Wall Street Journal published the reporting saying that four months before the US Agreed to sell all those AI chips to the uae, Takh Nun had bought almost half of Trump's world Liberty Financial. And the news spread quickly.

Jessica Mendoza (18:38)

There are times when I see a lead of a news story that is so startling to me, I have to read it out loud.

Narrator / Host (18:44)

There are brand new revelations that raise

Indeed Sponsor Voice (18:46)

serious questions about the depth of Donald

Rebecca Ballhaus (18:48)

Trump's second term grip.

Jessica Mendoza (18:50)

This sheik wanted AI chips, so he said, all right, I'm gonna buy Trump's crypto and I get the chips. It was literally a sheik down.

Narrator / Host (19:01)

After the news broke, more than a dozen Democrats condemned the Trump family's decision to accept an investment from a foreign official.

Rebecca Ballhaus (19:08)

Democrats, as you would expect, were pretty apoplectic about our reporting. We see Senator Chris Murphy goes to the Senate floor and condemns the deal.

Narrator / Host (19:17)

The White House has become a non stop corruption machine.

Rebecca Ballhaus (19:20)

Congressman Gregory Meeks is saying that he wants a review of these conflicts of interest and foreign influence to be completed and shared with the Congress. And Meeks kind of points his finger

Jessica Mendoza (19:33)

and shouts, stop covering for the President. Yeah, well, stop being his flunky.

Rebecca Ballhaus (19:42)

And so it's kind of amazing to see there's been so much brewing between Democrats and the administration about this idea of, you know, profiting off of the presidency. We really see some of those tensions come to a head in that hearing.

Narrator / Host (20:01)

Rebecca says it's unlikely that the Democrats calls for investigation will go anywhere while the party is in the minority. Republican lawmakers have largely refrained from commenting on the deal. A World Liberty spokesman said the deal didn't grant either party access to government decision making. He also called the Democrats comments baseless, saying, quote, these lawmakers are harassing a private American business to score political points. Donald Trump Jr. Was asked about Takhoun's 49% stake in World Liberty during an interview with CNBC. Here's Don Jr. A, my father has

Jessica Mendoza (20:36)

nothing to do with. B, it has nothing to do with AI Chips. And C, we met in the Middle east the first time.

Rebecca Ballhaus (20:42)

What their argument is is essentially that the sons are not in government and therefore can do what any other businessman can do, and that because their fathers are not involved, there's no conflict of interest.

Jessica Mendoza (20:54)

We've been dealing with the conflict of interest stuff for years. I, they tried all this nonsense the first time around. Frankly, it's gotten old. They were the ones that put us into this position.

Narrator / Host (21:04)

So some Democratic lawmakers have called this conflict of interest. How do conflict of interest laws apply to the president?

Rebecca Ballhaus (21:12)

The president is exempt from conflict of interest rules in a way that other members of his administration are not. And we talked about this so much during Trump's first term, the idea that there were really not a lot of rules in place for presidents and conflicts of interest and ethical obligations, because there has always been an assumption that a president would be governed by the norms of this role and the desire to not have there be bad optics and that sort of thing.

Narrator / Host (21:44)

Past presidents have typically placed their assets in a blind trust and avoided striking new business deals while in office.

Rebecca Ballhaus (21:51)

And we saw Trump very much not abide by those norms in his first term. And I remember there being a lot of questions about, like, what rules will be imposed after he leaves office, address this going forward. And we really didn't see very much of anything be put in place. And so now he's back and he's, you know, just doing the same thing he was doing before and. And maybe sort of turbocharged this time around.

Narrator / Host (22:18)

A White House spokesperson said that, quote, president Trump only acts in the best interests of the American public. The spokesperson also said that President Trump's assets are in a trust managed by his children and that there are no conflicts of interest. Over the past several years, his children have pursued business deals like the ones they've struck through World Liberty Financial, which has earned over a billion dollars for the Trump family since its launch. Rebecca, do these deals change the diplomatic playbook in any way?

Rebecca Ballhaus (22:49)

Yeah, I spoke to a number of people about that while we were reporting out this story. And what you've heard from, really, over the course of the past year from a number of lobbyists who have foreign governments as clients and foreign diplomats, is that there is this view abroad that Trump is a transactional president, and that, you know, I think some of these countries even appreciate that stance because they feel like they know how to play that game. But the feeling is very much that if you want something from the Trump administration, you have to be prepared to give something in return. There is certainly this perspective that it's got to be a trade. This deal really only reinforces that dynamic.

Narrator / Host (23:32)

Just a couple months ago, in February of this year, World Liberty Financial held a crypto conference of its own, the inaugural World Liberty Forum, Back where it all began at Trump's winter White House.

Rebecca Ballhaus (23:46)

Mar A lago World Liberty is throwing a conference in this ornate ballroom at Trump's resort in Palm Beach. There's a golden eagle that's sort of hanging over the conference stage. Guests are mingling by the pool, where there's another golden eagle sitting in the pool.

Narrator / Host (24:05)

Conference attendees included regulators, business leaders and Trump administration officials.

Rebecca Ballhaus (24:11)

So it's just yet another example of this kind of intermingling of World Liberty and the Trump administration.

Narrator / Host (24:18)

Another attendee was cz, the pardoned founder of cryptocurrency exchange Binance. This visit to Mar A Lago was his first time back on US Soil since he was released from prison.

Rebecca Ballhaus (24:33)

This event really sort of highlights how the Witkoff sons and the Trump sons have leveraged their father's roles in the administration to kind of flaunt their access to power. This event only demonstrated that they plan to grow from here, so it's pretty clear that World Liberty has no plans to slow down anytime soon.

Narrator / Host (25:05)

That's all for today. Saturday, April 25 the Journal is a co production of Spotify and the Wall Street Journal. This episode was produced by Sophie Kodner and edited by Laura Morris. I'm Jessica Mendoza. Additional reporting in this episode by Angus Baric, Elliot Brown and Patricia Kausman. Fact checking by Mary Mathis. Sound design and mixing by Nathan Singapak. Music in this episode by Peter Leonard, Bobby Lord and Nathan Singapak. Our theme music is by so Wiley and remixed by Nathan Singapore. Special thanks to Beth Blackshire, Katherine Brewer, pia Gidkari, Colin McNulty, Sarah Platt and Tatiana Zamis. Thanks for listening. See you Monday.

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