A U.S. House Committee has launched an inquiry into World Liberty Financial's (WLFI) $500 million investment from a group linked to the United Arab Emirates (UAE), raising concerns about potential conflicts of interest and national security risks. The probe, initiated by the House Select Committee on the Chinese Communist Party, is intensifying scrutiny of cryptocurrency ventures with political connections.
The investment in question was reportedly made shortly before Donald Trump's inauguration in January 2025. According to the Wall Street Journal, the deal involved Sheikh Tahnoon bin Zayed Al Nahyan, a prominent UAE official who is the brother of the country's president, serving as national security advisor and chairman of the Emirates' $1.5 trillion wealth fund. Tahnoon's emissaries allegedly agreed to acquire a 49% stake in WLFI, a cryptocurrency company co-owned by the Trump family.
Ethics experts have criticized the deal as a potential conflict of interest, with some suggesting it could violate the Constitution's Federal Emoluments Clause. Donald Sherman, president of Citizens for Responsibility and Ethics in Washington, stated that the deal raises questions about whether the Trump administration's policies affecting the UAE were influenced by the foreign nation's financial ties to the president.
Senator Chris Murphy has also publicly condemned the investment, labeling it as "brazen, open corruption". He highlighted that $187 million went to entities controlled by the Trump family and at least $31 million to entities tied to Steve Witkoff, who later became a U.S. Special Envoy to the Middle East. Murphy further alleged that the deal granted the foreign investor access to sensitive defense technology, potentially violating national security precedent.
Adding to the controversy, reports indicate that shortly after the investment, the Trump administration approved a plan allowing the UAE to import 500,000 of Nvidia's advanced AI chips, despite concerns that this could allow China access to the technology.
WLFI, founded in 2024, is a decentralized finance protocol and a business venture of the Trump family. The Trump family reportedly receives 75% of net proceeds from WLFI token sales and a cut of stablecoin profits.
President Trump has denied direct involvement in WLFI's day-to-day operations, stating that his sons handle such decisions. However, this has not quelled concerns about potential conflicts of interest and the influence of foreign investments on U.S. policy.
The House Committee has requested comprehensive documentation by March 2026, signaling a thorough investigation into the matter. The probe is expected to scrutinize potential conflicts of interest, national security risks related to AI export controls, and policy changes that may have favored foreign investors. This investigation could potentially reshape the regulatory landscape for politically connected cryptocurrency ventures.