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U.S. lawmakers have opened a congressional investigation into a $500 million foreign investment tied to a cryptocurrency venture linked to former President Donald Trump’s family just before his second inauguration. The probe centers on national security risks, conflicts of interest, and political influence.
Representative Ro Khanna, a Democrat from California, is leading the inquiry after reports revealed a UAE-connected entity acquired a large stake in World Liberty Financial. The firm operates in decentralized finance and was launched by Trump family associates.
The published reports indicate that the foreign investor received a 49 percent stake through the agreement, which required payment of $500 million. The deal reportedly closed four days before Trump assumed office in January 2025, which created doubts about its timing and disclosure practices.
The investigation wants to find out if the transaction created conflicts between U.S. policy decisions and private financial interests. Lawmakers are investigating whether foreign capital gained political power through its close ties to government officials.
Khanna sent a formal letter requesting confirmation of the reported Emirati investment and details on fund flows. The letter asks whether $187 million went to Trump family entities and whether other payments reached company affiliates.
The House inquiry also requests capitalization tables, profit distribution records, and board appointment documents. In addition, lawmakers want due diligence materials linked to Aryam Investment 1, the investment vehicle named in media reports.
Aryam Investment 1 reportedly connects to Sheikh Tahnoun bin Zayed Al Nahyan, the UAE’s national security adviser. His business interests span sovereign wealth funds and technology enterprises.
Critics have drawn attention to Sheikh Tahnoun’s influence across intelligence and investment sectors. These ties have increased scrutiny over the foreign stake and its implications for U.S. governance and security oversight.
One key focus of the probe involves USD1, World Liberty’s dollar-pegged stablecoin. Lawmakers note that USD1 settled MGX’s reported $2 billion investment in the crypto exchange Binance. Khanna’s letter seeks records explaining how USD1 was selected and how much revenue the transaction generated.
It also asks whether company staff discussed the later presidential pardon of Binance founder Changpeng Zhao. The inquiry points to a sequence of events lawmakers want examined. These include MGX’s Binance investment using USD1, Zhao’s pardon in October, and the UAE receiving semiconductor export licenses weeks later.
World Liberty Financial must respond by March 1, 2026. The response must include documents and communications tied to the reported stake acquisition and related payments.
The letter frames the issue as a governance and national security concern. It warns that the optics could affect export-control policy and blur boundaries between public decision-making and private financial gain.
Trump previously denied knowledge of the reported stake, stating his family manages the business. A White House crypto and AI official also said Trump’s assets sit in a blind trust. As Congress reviews the requested materials, lawmakers aim to clarify how the UAE investment was structured, how profits are distributed, and what safeguards are in place.
One question remains central: Did the timing of money and policy create unacceptable risks?
Read More: World Liberty Financial Portfolio Drops as WLFI Token Slides: Here’s Why
U.S. lawmakers are examining a $500 million UAE investment in World Liberty Financial over timing, ownership, and stablecoin use. The probe seeks records on payments, governance, and policy links. The outcome may shape future oversight of foreign capital in U.S.-linked crypto ventures.
