A political and crypto-linked controversy has emerged in Washington after reports that a UAE royal–connected group invested $500 million in World Liberty Financial, a crypto project linked to the Trump family.
The investment has triggered a congressional investigation led by US Representative Ro Khanna, who is examining whether the deal raises conflict-of-interest or national security concerns.
The timing of the transaction, completed just days before Donald Trump formally returned to the White House, has intensified scrutiny and placed the deal at the centre of a broader debate over foreign capital and politically connected crypto ventures.
Deal timing under scrutiny
On January 16, 2025, a group linked to Sheikh Tahnoon bin Zayed Al Nahyan signed an agreement to acquire a 49% stake in World Liberty Financial, also known as WLFI.
The deal was finalised shortly before Trump officially assumed office.
WLFI is tied to the Trump family through its founders and management structure, placing the investment at the intersection of private crypto business and public office.
Khanna has opened an investigation into the transaction, citing concerns over its size, timing, and foreign connections.
He is seeking to determine how the investment was approved and whether safeguards were applied, given Trump’s imminent return to power.
Breaking: I have launched an investigation as ranking member of the Select Committee on China into a $500 million UAE investment in the Trump family’s cryptocurrency company.
This is about public trust and transparency. wsj.com/politics/natio…
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Congress demands transparency
Khanna, who serves on a select committee focused on China-related and broader national security risks, has sent a formal letter to WLFI co-founder Zach Witkoff requesting detailed records.
These include ownership documents, payment flows, internal communications, and board-level discussions related to the UAE-backed investment.
Lawmakers want clarity on who authorised the deal, how funds moved through the company, and whether any internal compliance concerns were raised.
Khanna has said transparency is necessary to ensure foreign capital entering politically connected crypto projects does not create indirect influence over US decision-making.
Foreign ties and policy questions
The reported link to Sheikh Tahnoon bin Zayed Al Nahyan has heightened concern.
Sheikh Tahnoon is a senior security official in the United Arab Emirates, raising questions about whether foreign government-linked capital could affect US policy through private business channels.
The inquiry has widened to include US policy decisions that followed the investment.
Khanna has pointed to the approval of advanced AI chip exports to the UAE shortly after the deal, noting that such exports are typically restricted due to security concerns.
He has also raised questions about WLFI’s USD1 stablecoin, which he said was used in a $2 billion Binance investment involving a UAE-linked group.
The investigation has further questioned whether these business ties were connected to the later pardon of Binance founder Changpeng Zhao.
Khanna has asked WLFI to submit all requested documents by March 1, 2026. He has said Congress will closely review the records to assess compliance with US conflict-of-interest rules and national security protections.
WLFI and the White House have described the investment as a routine business transaction.
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