US lawmakers investigate Trump-linked crypto firm, World Liberty Financial, over foreign investment concerns tied to UAE entities.
US House Democrats have opened a formal probe into World Liberty Financial, a crypto venture linked to Donald Trump. According to The Wall Street Journal, the inquiry is focused on a reported $500 million investment. Lawmakers cite fears of foreign influence and possible conflicts. The investigation started in early February of 2026.
Lawmakers Question Foreign Investment in WLFI
Representative Ro Khanna, a senior House Democrat, started the investigation this week. He is the ranking member of House Select Committee on China competition. On Wednesday, Khanna wrote WLFI co-founder Zach Witkoff a formal letter. The letter asked for detailed documents and internal records.
Related Reading: Crypto News: Trump Denies Knowledge of Reported $500M Abu Dhabi Stake in World Liberty Financial | Live Bitcoin News
The probe is centered around an alleged investment related to the UAE royal family. Reports link the funding to Sheikh Tahnoon bin Zayed Al Nahyan. He is the UAE national security adviser and a major investor. Lawmakers are looking at the size, timing and structure of the deal.
According to reports, a firm linked to the UAE bought a 49% stake in WLFI. The transaction is said to have been closed on January 16, 2025. That date comes four days before Donald Trump’s inauguration. Investigators are reviewing the issue of whether the timing raises constitutional concerns.
One of the focuses is the Foreign Emoluments Clause of the US Constitution. Lawmakers want to find out if the investment generated improper benefits. They are also evaluating whether Trump family ties had an impact in terms of regulation. The inquiry is meant to determine whether safeguards were bypassed.
National security issues are also at the heart of the probe. Lawmakers are questioning whether US policy decisions followed the investment. In addition, reports mention approval of exports of advanced AI chip to the UAE. These approvals came reportedly soon after the deal.
The investigation also looks into potential regulatory favoritism. Lawmakers are reviewing ties to Binance founder Changpeng Zhao pardon. They are examining, too, the SEC’s decision to drop certain enforcement actions. No conclusions have yet been declared.
Investigation Timeline and Official Responses
The House committee put a firm deadline on how long businesses have to comply. WLFI has until March 1, 2026, to submit ownership records and payment details. Internal communications concerning the investment are also needed. The scope covers transactions that involve the World Liberty’s USD1 stablecoin.
Lawmakers are particularly taking a look at a $2 billion Binance investment. That transaction was reportedly for entities linked to the UAE and the USD1 stablecoin. Investigators want to know how WLFI products were utilized. The inquiry is looking for clarity on financial flows and counterparties.
World Liberty Financial has denied it has done anything wrong. A company spokesman attacked the probe as politically motivated. The spokesperson labeled the inquiry as a private American business being harassed. WLFI maintains that the investment was routine and lawful.
The White House also issued a response with respect to the investigation. Officials said that President Trump is not involved with WLFI operations. They stressed that the Trump family members conduct business affairs on their own. The administration denied having any policy influence.
The investigation is still in an early stage. Lawmakers emphasize that there have been no official findings. However, the probe highlights increased scrutiny of crypto ventures. Foreign capital involvement retains bipartisan attention.
The result may have implications for the future crypto regulations debate. Foreign investment rules could be given a fresh look. Lawmakers want to strike the right balance between innovation and national security. The probe is reflective of larger tensions in US crypto policy debates.
