Congressional Probe Demands Records from Trump-Linked Crypto Firm Over Alleged $500M UAE Stake
A congressional investigation has zeroed in on World Liberty Financial, a cryptocurrency venture with ties to former President Donald Trump, demanding a trove of internal records to determine if foreign capital and U.S. policy became improperly intertwined.
The probe, led by Representative Ro Khanna (D-Penn.), ranking member of the House Select Committee on the Chinese Communist Party, was launched after a Wall Street Journal report alleged an Abu Dhabi-linked entity agreed to acquire a 49% stake in the firm for $500 million shortly before Trump's 2025 inauguration. Lawmakers are now scrutinizing the deal's structure and its potential implications for national security, particularly regarding sensitive AI chip export controls.
In a formal letter to the company, Khanna's committee has requested ownership records, payment trails, and internal communications. The inquiry seeks to verify whether $187 million from the reported investment was directed to Trump family entities and if additional payments reached affiliates of the firm's co-founders.
A significant focus is on World Liberty's dollar-pegged stablecoin, USD1. Investigators are demanding documentation on how it was selected to facilitate a separate $2 billion investment by Abu Dhabi's MGX into the crypto exchange Binance. The committee wants details on the transaction's revenue and whether company personnel were involved in discussions related to the subsequent presidential pardon of Binance founder Changpeng Zhao.
The document request extends to capitalization tables, profit distributions, board appointment records, and due diligence materials related to the investment vehicle, Aryam Investment 1. The committee has also instructed World Liberty to preserve all electronic communications and internal policies concerning conflicts of interest, export controls, and dealings with entities linked to the United Arab Emirates or China.
The firm faces a March 1 deadline to comply with the congressional demands. The investigation underscores growing bipartisan concern over the intersection of digital assets, foreign investment, and political influence in Washington.
Reaction & Analysis
David Chen, Financial Compliance Analyst: "This is a textbook case for why crypto needs clearer regulatory guardrails. The use of a stablecoin in a transaction of this scale, coupled with opaque ownership, creates a perfect storm for investigators. The core question is whether financial engineering was used to circumvent oversight."
Senator Mark Reynolds (R-Idaho): "While due diligence is necessary, we must be cautious not to stifle innovation or demonize legitimate foreign investment. The committee should focus on facts, not political narratives."
Anya Petrova, Editor at 'CryptoWatchdog': "It's astonishing. This isn't just about a financial transaction; it's about potential influence-peddling at the highest level. If these allegations are true, it represents a direct threat to national security policy being auctioned to the highest bidder. The March 1 deadline can't come soon enough."
Professor Liam Jones, Georgetown University Law Center: "The probe strategically links the investment to AI chip export controls—a top-tier national security issue. This elevates it beyond a standard financial inquiry and guarantees it sustained attention, regardless of the election cycle."