TLDR
- Senate Democrats are investigating Steve Witkoff for his financial ties to WLFI and other crypto firms.
- Lawmakers say Witkoff’s continued crypto holdings may violate federal ethics laws.
- His latest disclosure reveals that he still owns stakes in WLFI and related entities, despite his promises to divest.
- The senators raised concerns about WLFI’s business connections to the U.A.E. and possible diplomatic conflicts.
- Steve Witkoff co-founded WLFI with Donald Trump in 2024 while also serving as a Middle East envoy.
Eight Senate Democrats are demanding answers from Steve Witkoff over his financial ties to cryptocurrency firm WLFI. Witkoff, who serves as Donald Trump’s Middle East envoy, faces questions over potential conflicts of interest. Lawmakers want clarity on his August disclosure that shows ownership in several crypto-related entities.
Senators Demand Ethics Clarity from Witkoff
Senators sent a letter on October 22, raising concerns about Witkoff’s stake in WLFI and other cryptocurrency firms. They argue this may violate ethics rules and compromise his public duties in the Middle East. Witkoff has until Oct. 31 to provide detailed explanations on his crypto holdings.
The letter states,
“Your failure to divest…raises serious questions about your compliance with federal ethics laws.”
It also notes the risk to public trust. Witkoff’s updated filing still lists interests in WLFI, WC Digital Fi LLC, and two other related firms.
His co-ownership of WLFI with Trump, revealed in 2024, triggered bipartisan concern. Critics say this financial link conflicts with his diplomatic responsibilities. Yet Witkoff claims he is committed to resolving any ethical concerns while retaining some assets.
WLFI’s UAE Links Spark Diplomatic Concerns
WLFI’s business connections with the U.A.E. heighten scrutiny of Witkoff’s diplomatic neutrality. Lawmakers argue that such ties blur the line between public service and private profit. This raises specific concerns about influence in U.S.-Middle East relations.
Witkoff has not clarified how WLFI operations intersect with his envoy role. Transparency advocates urge full disclosure of his crypto-related decisions. Although Witkoff divested from his real estate firm, he remains financially linked to WLFI.
His continued holdings in WC Digital SC LLC and SC Financial Technologies LLC also compound the issue. Senators are pressing for details on whether these entities interact with WLFI’s crypto infrastructure. They expect a written response detailing all measures taken to avoid ethical conflicts.
Trump Family’s WLFI Involvement Faces Criticism
Democratic Senator Elizabeth Warren called the WLFI project “corruption, plain and simple” in a public statement. She criticized the lack of crypto regulations protecting the public from political profiteering. Her remarks followed reports that Trump and family earned over $1 billion from digital ventures.
The WLFI token, launched in 2024, remains at the center of these claims. Critics argue Trump’s family used influence to boost WLFI’s visibility and market value. The White House denies any ethical violations, stating Trump separates politics from business.
Nonetheless, the WLFI case fuels growing demand for tighter oversight of crypto use by public officials. Lawmakers are now calling for reforms to ensure transparent reporting of crypto assets. The controversy over WLFI continues to intensify political debate.
