Trump Gandeng Crypto Platform Allegedly Related To Middle Eastern Militant Group

JAKARTA - The President-elect of the United States, Donald Trump, is facing the sharp spotlight after his latest crypto venture project partnered with platform Tron, which financial experts and authorities consider to have been used by Iran-backed criminal and militant groups, including Hamas and Hezbollah.

The project, called World Liberty Financial Inc., was founded by the Witkoff family two months before the US election, where Trump is one of the recipients of financial benefits. Cooperation with Tron, led by Justin Sun, raises ethical questions and potential conflicts of interest.

Tron is known as a faster and cheaper crypto transfer network than Bitcoin, but is often highlighted for its use by militant groups. According to Israeli authorities, 186 Tron wallets have been frozen since 2021 for allegedly linked to terrorism activities, including 84 wallets linked to Hamas and 39 others with Hezbollah.

In a report to Reuters, Tron said it had taken steps to address the risks of illegal activity in their network, including collaborating with authorities to freeze funds worth US$70 million (Rp1.1 trillion). However, claims that the platform used by militants were not fully described by the authorities.

Tron invested 30 million US dollars (Rp478.8 billion) in World Liberty and appointed Justin Sun as an advisor to the venture. The move raises concerns that relations between Tron and World Liberty could affect Trump's upcoming government policies, including decisions related to crypto regulation.

"It's full of danger," said Total Clark, professor of government ethics at Washington University. His concerns include whether Trump will benefit financially from this partnership, given that he and his affiliate are said to be entitled to 75% of certain income from World Liberty.

In addition, Steve Witkoff, Trump's best friend and World Liberty co-founder, is also a concern. Witkoff was recently appointed as a special envoy for the Middle East despite his lack of experience in foreign policy. Some assess that Witkoff's role in diplomacy can be disrupted by his business interests in the crypto sector.

Trump's transition team has yet to provide an in-depth response to allegations of a conflict of interest. However, the transition spokesman, Krypto Leavitt, stated, "President Trump did not enter politics for personal gain. He fought for loving the people of this country."

As the "Chief Crypto Advocate" of World Liberty, Trump has the potential to benefit from more friendly crypto regulation under his government. In the campaign, he promised to appoint a new SEC chairman who is more supportive of the crypto industry, replacing Gary Gensler, who is known to often sue big crypto companies.

This collaboration further strengthens the relationship between Trump's business and his government's policies, sparking concerns about his integrity and impact on US diplomacy in the Middle East.