Eight Senate Democrats, led by Senator Adam Schiff, have sent a letter to Steve Witkoff, President Donald Trump's special envoy to the Middle East, demanding clarification on his continued cryptocurrency holdings, which they argue create a conflict of interest. The letter, dated October 22, 2025, and first reported by The New York Times and Fortune, cites Witkoff's August 13 ethics disclosure that shows ownership in four crypto-related entities: World Liberty Financial (WLFI), WC Digital Fi LLC, WC Digital SC LLC, and SC Financial Technologies LLC.
Witkoff, who co-founded WLFI with Trump in 2024, had previously committed to divesting his interests but still holds crypto assets through these vehicles. Senators expressed concern that his financial ties, particularly WLFI's operations in the United Arab Emirates (UAE), could influence his diplomatic duties. They highlighted a $2 billion deal between WLFI and MGX, a UAE state-owned investment firm, which was funneled through Binance using the USD1 stablecoin issued by WLFI. This transaction occurred just weeks before a major U.S.-UAE AI agreement in May 2025, raising ethical red flags.
The senators' letter states, "Your failure to divest your ownership in these assets raises serious questions about your compliance with federal ethics laws and, more importantly, your ability to serve the American people over your own financial interests." Witkoff has until October 31, 2025, to provide a detailed response on how he plans to resolve the perceived conflict. This scrutiny adds to broader criticism of the Trump family's crypto involvement, with reports indicating they earned at least $1 billion from various digital assets, including WLFI tokens, meme coins, and DeFi platforms, in the past year.
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