A new crypto-linked political controversy has erupted in Washington after a reported $500 million investment from a UAE royal–connected group in World Liberty Financial, a project tied to the Trump family.
Following this, U.S. Representative Ro Khanna has launched an investigation, raising concerns over possible conflicts of interest and national security risks.
On January 16, 2025, a group linked to Sheikh Tahnoon bin Zayed Al Nahyan of the UAE signed a deal to buy a 49% stake in World Liberty Financial. The agreement was finalized just days before Donald Trump officially took charge of the White House.
Rep. Ro Khanna, Select Committee focused on China-related risks, has now demanded full details of this deal.
He sent a formal letter to Zach Witkoff, co-founder of World Liberty Financial (WLF), asking for ownership documents, payment flows, internal messages, and board communications connected to the transaction.
Lawmakers want to understand who approved the deal, how funds moved, and whether any policy decisions followed it.
Khanna believes the timing and size of the deal raise serious questions about transparency and national security.
The concern is not only about the investment size but also about timing and connections. The foreign investor group is reportedly tied to Sheikh Tahnoon bin Zayed Al Nahyan, a senior security official in the United Arab Emirates.
Khanna’s letter raises questions about whether this UAE investment could create possible conflicts of interest. Since the Trump family is directly connected to the crypto project, any foreign money flowing into it may affect US government decisions.
Although President Trump has denied knowing about the deal, he told reporters that his sons manage the business and accept investments from different global partners.
Khanna linked the crypto deal to sensitive U.S. technology policy. He said that soon after the UAE investment, the U.S. approved exports of advanced AI chips to the UAE, which are usually restricted due to security concerns.
He believes that the investment may have played a role in shifting US policy in favor of the UAE.
Khanna also raised concerns about the USD1 stablecoin from World Liberty Financial, saying it was used in a $2 billion Binance investment by a UAE-linked group. He believes this helped boost USD1’s global use and benefited the Trump-linked firm.
He even questioned whether these business ties were connected to the later pardon of Binance founder Changpeng Zhao.
Khanna has asked World Liberty Financial to provide full documents and records by March 1, 2026. He warned that Congress would closely examine the matter to protect US national security.
While the company and the White House call the deal a normal business transaction, the investigation is likely to keep political and crypto circles on edge in the coming months.
U.S. lawmakers are investigating a $500M UAE investment in the Trump-linked firm over concerns about national security risks and potential conflicts of interest for the administration.
Rep. Khanna is investigating the timing and size of the investment, concerned it may have influenced U.S. policy like AI chip exports to the UAE and posed a conflict of interest.
Rep. Khanna’s committee has demanded all related documents from World Liberty Financial by March 1, 2026, as part of its ongoing review.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
On February 4, U.S. spot Bitcoin ETFs recorded total net outflows of $545 million, with…
Grant Cardone confirmed that his firm, Cardone Capital, has bought more Bitcoin at around $72,000…
BitMine Immersion Technologies, led by Tom Lee, is reporting over $7.4 billion in unrealized losses…
XRP price saw a sharp downside pressure during the latest session, dropping close to 10%…
U.S. Treasury Secretary Scott Bessent told Congress the government has no power to bail out…
Over the past three days, Vitalik Buterin sold roughly 2,961.5 ETH, worth about $6.6 million,…
