The US House of Representatives has launched a formal investigation into World Liberty Financial (WLFI), the Trump family-linked crypto venture, following reports that a UAE-connected entity secretly acquired a $500 million stake just days before President Trump's inauguration.
What Triggered the Investigation
Rep. Ro Khanna, ranking member of the House Select Committee on the Chinese Communist Party, sent a formal letter demanding ownership records, payment details, and internal communications from World Liberty Financial. The probe centers on a Wall Street Journal report revealing that Aryam Investment 1, a UAE-backed vehicle tied to national security adviser Sheikh Tahnoon bin Zayed, quietly acquired a 49% stake in WLFI.
The deal was reportedly signed on January 16, 2025 by Eric Trump—just four days before the presidential inauguration.
The Money Trail
Khanna's letter asks WLFI to confirm several key details:
- Whether $187 million flowed directly to Trump family entities
- Whether additional payments were made to affiliates of the company's co-founders
- Capitalization tables and profit distributions
- Board appointment records tied to the UAE investment
- Due diligence materials related to Aryam Investment 1
The investigation has set a March 1, 2026 deadline for WLFI to produce all requested documents.
The USD1 Stablecoin Connection
A significant portion of the inquiry focuses on USD1, World Liberty's dollar-pegged stablecoin. The token was used to settle MGX's $2 billion investment in Binance—raising questions about potential conflicts of interest.
Investigators are seeking documentation on:
- How USD1 was selected for the Binance transaction
- Revenue generated by the stablecoin's role in the deal
- Whether WLFI personnel were involved in discussions regarding the presidential pardon of Binance founder Changpeng Zhao
National Security Concerns
The timing of the UAE investment has drawn scrutiny from lawmakers and ethics watchdogs. The deal was finalized shortly before the Trump administration approved expanded access for the UAE to acquire advanced US-made AI chips, easing export restrictions that had remained in place under the Biden administration.
While no direct link has been established, the sequence of events has raised questions about potential quid pro quo arrangements.
WLFI and White House Response
World Liberty Financial acknowledged the UAE deal but pushed back against the investigation. A company spokesperson stated that "neither President Trump nor Steve Witkoff had any involvement whatsoever in this transaction" and called claims linking the deal to chip export policy "100% false."
President Trump told reporters he had no knowledge of the transaction, noting that his sons and other family members manage the business independently.
WLFI has characterized the probe as politically motivated, accusing lawmakers of "targeting a private company without cause."
What This Means for Crypto Users
The investigation highlights the growing intersection of crypto ventures and political power. For users of WLFI's products, including the USD1 stablecoin, the probe creates uncertainty:
- Regulatory risk: Congressional scrutiny could lead to enforcement actions or new compliance requirements
- Stablecoin stability: Questions about USD1's governance may affect user confidence
- Market perception: Association with political controversy could impact WLFI token valuations
The broader crypto industry is watching closely. If investigators find evidence of improper dealings, it could strengthen the case for stricter stablecoin regulations—affecting not just WLFI but the entire sector.
The Bottom Line
The House probe into World Liberty Financial represents one of the most significant congressional investigations into a crypto firm to date. With a March 1 deadline looming, the coming weeks will determine whether WLFI cooperates fully or faces escalating pressure.
For now, users should monitor developments closely. The outcome could reshape how politically connected crypto ventures operate—and what disclosures they're required to make.
