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Trump-Linked World Liberty Financial Draws House Scrutiny After $500M UAE Stake Revealed

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A US House investigation has turned its focus to World Liberty Financial, a Trump-linked crypto enterprise.

The transfer follows a current Wall Street Journal report of a $500M UAE-linked stake agreed shortly earlier than President Donald Trump’s inauguration.

Rep. Ro Khanna, a Democrat from California and the rating member of the House Select Committee on the Chinese Communist Party, on Wednesday sent a letter to World Liberty co-founder Zach Witkoff in search of possession information, cost particulars and inside communications tied to the reported deal and associated transactions.

Khanna wrote that the Journal reported “lieutenants to an Abu Dhabi royal secretly signed a cope with the Trump Family to buy a 49% stake of their fledgling cryptocurrency enterprise [World Liberty Financial] for half a billion {dollars}” shortly earlier than Trump took workplace.

He argued the reported funding raises questions on conflicts of curiosity, nationwide safety and whether or not US know-how coverage shifted in ways in which benefited international capital tied to strategic priorities.

Meanwhile, Trump has said he had no knowledge of the deal. Speaking to reporters on Monday, he mentioned he was not conscious of the transaction and famous that his sons and different relations handle the enterprise and obtain investments from varied events.

Crypto Venture Deal Draws Scurinty Over AI And National Security Policy Intersection

The letter additionally linked the reported stake to US export controls on superior AI chips and issues about diversion to China via third international locations.

Khanna mentioned the Journal report advised the UAE-linked funding “might have resulted in important adjustments to U.S. Government insurance policies designed to stop the diversion of superior synthetic intelligence chips and associated computing capabilities to the People’s Republic of China.”

According to the Journal account cited within the letter, the settlement was signed by Eric Trump days earlier than the inauguration.

The investor group was described as linked to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE nationwide safety adviser. Two senior figures related to his community later joined World Liberty’s board.

USD1 Stablecoin Use Raises Questions Over Influence And Profits

Khanna’s letter pointed to a different UAE-linked deal involving World Liberty’s USD1 stablecoin, which he mentioned was used to facilitate a $2B investment into Binance by MGX, an entity tied to Sheikh Tahnoon. He wrote that this use “helped catapult USD1 into one of many world’s largest stablecoins”, which might have elevated charges and revenues for the challenge and its shareholders.

The lawmaker additionally related the Binance funding to later coverage developments, together with chip export selections and a presidential pardon for Binance founder Changpeng Zhao.

He cited a former pardon legal professional who mentioned, “The affect that cash performed in securing this pardon is unprecedented. The self-dealing side of the pardon when it comes to the profit that it conferred on President Trump, and his household, and other people in his interior circle can also be unprecedented.”

Khanna framed the general image as greater than political optics. “Taken collectively, these preparations should not only a scandal, however might even symbolize a violation of a number of legal guidelines and the United States Constitution,” he wrote, citing conflict-of-interest guidelines and the Constitution’s Foreign Emoluments Clause.

Khanna Warns Of National Security Stakes In WLFI Case

He requested World Liberty to reply detailed questions and produce paperwork by March 1, 2026, together with agreements tied to the reported 49% stake, cost flows, communications with UAE-linked representatives, board appointments, due diligence and information tied to the USD1 stablecoin’s position within the Binance transaction.

Khanna additionally pressed for particulars on any discussions round export controls, US coverage towards the UAE and strategic competitors with China, in addition to communications associated to President Trump’s choice to pardon Zhao.

The probe lands at a second when stablecoins sit nearer to the middle of market construction debates, and when politically related crypto ventures face sharper questions on possession, governance and entry.

Khanna closed his letter with a warning in regards to the stakes, writing, “Congress is not going to be supine amid this scandal and its unmistakable implications on our nationwide safety.”

The submit Trump-Linked World Liberty Financial Draws House Scrutiny After $500M UAE Stake Revealed appeared first on Cryptonews.

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