A US House investigation is zeroing in on World Liberty Financial, a crypto venture linked to former President Donald Trump, following reports of a massive $500 million investment tied to the UAE.
The scrutiny comes after a recent Wall Street Journal report revealed that the deal was agreed just days before Trump’s inauguration. On Wednesday, Rep. Ro Khanna, a California Democrat and the ranking member of the House Select Committee on the Chinese Communist Party, sent a letter to Zach Witkoff, World Liberty’s co-founder, demanding detailed records tied to the investment.
Khanna is asking for ownership documents, payment details, and internal communications connected to what the Journal described as a deal in which representatives linked to an Abu Dhabi royal family purchased a 49% stake in the still-young crypto project for half a billion dollars.
In his letter, Khanna said the timing and scale of the investment raise serious concerns about conflicts of interest, national security risks, and whether US technology policy may have shifted in ways that benefited foreign capital with strategic interests.
Trump, for his part, has said he had no knowledge of the transaction. Speaking to reporters earlier this week, he said the business is managed by his sons and other family members, and that they routinely accept investments from outside parties.
AI Chips, China, and Policy Questions
Khanna’s concerns go beyond crypto. His letter ties the reported UAE investment to US export controls on advanced AI chips, pointing to fears that sensitive technology could be diverted to China through third countries.
According to the Journal account cited in the letter, the agreement was signed by Eric Trump shortly before the inauguration. The investor group was described as being linked to Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser. Two senior figures connected to his network later joined World Liberty’s board, according to the report.
Khanna wrote that the investment may have coincided with “significant changes” in US policy designed to restrict the flow of advanced AI technology to China—raising questions about whether foreign money influenced those decisions.
Stablecoins, Binance, and Allegations of Influence
The lawmaker also pointed to a separate UAE-linked deal involving World Liberty’s USD1 stablecoin, which he said was used to facilitate a $2 billion investment into Binance by MGX, an entity tied to Sheikh Tahnoon.
According to Khanna, that transaction helped propel USD1 into the ranks of the world’s largest stablecoins—potentially boosting fees and revenues for World Liberty and its shareholders.
He further linked the Binance deal to later policy developments, including decisions around chip exports and President Trump’s pardon of Binance founder Changpeng Zhao. Khanna quoted a former pardon attorney who described the situation as “unprecedented,” arguing that money may have played an outsized role in securing the pardon and that the benefits flowed back to Trump, his family, and close associates.
A Warning Over National Security
Khanna framed the issue as far more than a political controversy. In his view, the reported arrangements could represent violations of US conflict-of-interest laws and the Constitution’s Foreign Emoluments Clause.
He has given World Liberty until March 1, 2026, to turn over documents and answer detailed questions, including agreements tied to the 49% stake, payment flows, communications with UAE-linked figures, board appointments, due diligence records, and documentation related to USD1’s role in the Binance transaction.
Khanna also requested records of any discussions involving export controls, US policy toward the UAE, competition with China, and communications connected to Trump’s decision to pardon Zhao.
The investigation lands at a sensitive moment for the crypto industry, as stablecoins move closer to the center of regulatory debates and politically connected crypto ventures face growing scrutiny over ownership, governance, and access to power.
Khanna closed his letter with a sharp warning: Congress, he said, “will not be supine amid this scandal and its unmistakable implications on our national security.”
