What is the story about?
Behind a major crypto deal linked to the Trump family, is a quiet but powerful figure, known as the 'Spy Sheikh'. According to a report, the 'Spy Sheikh' signed
a USD 500 million agreement with Donald Trump, just days before he returned to the White House in January 2025, to buy a 49 per cent stake in the US President's cryptocurrency venture.
Who Is 'Spy Sheikh'?
The 'Spy Sheikh' has been identified as none other than Sheikh Tahnoon bin Zayed Al Nahyan, according to a Wall Street Journal report. Sheikh Tahnoon is the brother of the UAE president and the country's national security adviser. He also heads the UAE's largest wealth fund and controls an investment empire worth over $1.3 trillion. He is considered one of the most powerful investors in the world.
Sheikh Tahnoon's January 2025 deal involved World Liberty Financial, a fast-growing crypto firm connected to the Trump family. Under the agreement, half the amount was to be paid upfront, with $187 million going to Trump-linked entities.
Documents cited by the WSJ show that the deal was signed by Trump's son, Eric Trump. However, what drew everyone's attention was not only the timing, which was four days before Trump's inauguration, but also that a foreign government official had secured a large ownership stake in a business tied to an incoming US president.
Sheikh Tahnoon Seeks Access To US-Made AI Chips
At the same time, Tahnoon has been pushing for access to advanced US-made artificial intelligence chips. These chips were tightly controlled under the previous administration. The report said that Tahnoon had repeatedly sought access to protected AI hardware from Washington.
Trump's return to office appeared to change the situation. After the election, Tahnoon held several meetings with Trump and US envoy Steve Witkoff, including a visit to the White House. During the meeting, he expressed interest in working with the US on artificial intelligence and other strategic areas, people familiar with the talks said.
US Grants Access
Within two months of a March meeting, the US administration agreed to allow the UAE access to around 500,000 advanced AI chips every year. This would be enough to build one of the world’s largest AI data centre networks. About one-fifth of these chips were expected to go to G42, a tech firm closely linked to Tahnoon.
How The Crypto Deal Was Made
Documents show the World Liberty investment was made through a Tahnoon-backed firm called Aryam Investment 1. Of the first $250 million payment, $187 million went to Trump family-linked companies DT Marks DEFI LLC and DT Marks SC LLC. Another $31 million was sent to a company linked to World Liberty co-founders Zak Folkman and Chase Herro.
The deal made Aryam the biggest shareholder in World Liberty and its only known investor outside the founders. It also changed the company's board. Two Aryam executives, both senior figures at Tahnoon-linked G42, joined World Liberty’s five-member board. At the time, the board already included Eric Trump and Zach Witkoff, the son of Steve Witkoff.
On January 16, 2025, Aryam representatives formally signed the $500 million agreement with World Liberty. Five days later, on Trump’s first full day in office, he announced a $500 billion AI-focused data centre project involving OpenAI and SoftBank. Tahnoon’s investment firm MGX was named as one of the additional investors.
Developments continued in the months that followed. On May 8, the US Treasury Department announced a fast-track pilot scheme for foreign investors, a process the UAE had been seeking. Later that month, during Trump's visit to Abu Dhabi, he announced a "very big contract" allowing the UAE to buy US-made AI chips. After further talks, the administration approved the sale of 35,000 chips to G42, fewer than the UAE wanted but still a major step.
Tahnoon Studied Trump Firm's Plans?
A person familiar with Tahnoon’s investment told The Wall Street Journal that the sheikh and his team studied World Liberty’s plans for "a number of months" before completing the deal with "a few co-investors". The person said the funding did not come from G42 and added, "At no time during that due diligence or thereafter was the investment discussed with President Trump." The source also described Tahnoon as a "significant investor" in cryptocurrency companies.
White House Rejects Claims Of 'Conflict Of Interest'
The White House rejected claims of a conflict of interest. "President Trump only acts in the best interests of the American public," spokeswoman Anna Kelly said. She added that Trump's assets are held in a trust managed by his children and that there are "no conflicts of interest". She also said Witkoff is working to "advance President Trump's goals of peace around the world".
A spokesperson for the Trump Organisation said the company "takes its ethical obligations extremely seriously and is deeply committed to preventing conflicts of interest," and follows all applicable laws.
